GoPro Releasing Earnings, What About Ambarella?

GoPro Inc GPRO will be announcing earnings at the close of Tuesday’s market session. The wearable action-camera company is expected to release an earnings per share of $0.26 on sales of $395.22 million. Shares of the tech company have been performing fairly well in the past month, up nearly 10 percent. Nick Woodman, Founder and CEO, announced last month that GoPro will be constructing a quadcopter; expanding the company into the drone industry.

So What?
Another big company to worry about, even bigger than GoPro (in terms of market capitalization) is Ambarella Inc AMBA, which creates and develops the high-definition video capturing chips that are used in GoPro’s cameras. Ambarella is crucial, since it is the most important supplier the company has.

Early in June, Jim Cramer specified that the drones GoPro are making will drive Ambarella’s growth even more than GoPro’s; He explains that Ambarella has exciting businesses that are tied into the drone industry.

It is still important to keep in mind that GoPro’s earnings may easily affect shares of Ambarella.