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Is The Selloff In Mobileye Overdone?

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Is The Selloff In Mobileye Overdone?
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Mobileye NV (NYSE: MBLY)'s stock plunged more than 13 percent Tuesday morning after the company said its partnership with Tesla Motors Inc (NASDAQ: TSLA) will not be extended. The Israel-based developer of advanced driver assistance systems and autonomous driving technologies, supplied Tesla with a processor for use in its cars called the EyeQ3.

Mobileye's stock was hard hit following the conference call. The company reported its Q2 earnings in which it earned $0.17 per share on revenue of $83.5 million - exceeding Wall Street's expectations of $0.15 per share on revenue of $77.3 million.

John Rosevear, a senior analyst with The Motley Fool, Tweeted that Tesla represents just 1 percent of Mobileye's total sales. He added that Mobileye's CEO, Ziv Aviram, couldn't confirm the figure, but it's close.

Related Link: Mobileye Tanks After Partnership With Tesla Ends

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Mobileye's Deep Portfolio Of Clients And Partners

Mobileye entered into an agreement with BMW and Intel Corporation (NASDAQ: INTC) to jointly cooperate and develop driver-less car technologies.

Analysts at CLSA speculated that the agreement would mark the automotive industry's "first-ever production commitment towards driverless shared mobility." The analyst maintained a Buy rating on Mobileye's stock with a $58 price target.

Here are some of the more notable headlines which support the thesis that Mobileye's portfolio extends beyond Tesla:

Posted-In: EyeQ3 israelEarnings Long Ideas News Movers Tech Trading Ideas Best of Benzinga

 

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