Ambarella Sharply Lower After Lower Sales Guidance

Ambarella Inc AMBA shares are trading lower by $6.00 (10.6 percent) at $53.72 in Wednesday's session.

After Tuesday's close, the company announced a Q1 EPS beat of 3 cents along with a sales beat of $630,000. However, the company lowered Q2 sales guidance to $69-$72 million vs. $72.35 million estimates.

After a much lower open, Ambarella could only muster a 2-cent pop to $56.62 before continuing its move lower. It has continued to make new lows for the session, with the current one standing at $53.51 as of 9:56 a.m. EST. That low coincides with its April 24 low ($53.67).

If the decline continues, the next daily support level doesn't come in until its April 21 low ($52.19).