Cadian Capital’s New Tech Picks: LinkedIn Corp (LNKD), Ambarella Inc (AMBA), PROS Holdings, Inc. (PRO)

Cadian Capital has initiated a new position in Ambarella Inc (NASDAQ:AMBA) of 470,000 shares valued at $48.26 million. The semiconductor company is known for providing semiconductor-processing solutions to the camera industry, IP security industry, and wearable camera producers. The firm draws the majority of its revenue from its partnership with sports-camera maker, GoPro Inc (NASDAQ:GPRO), around 30% in total. Some experts consider this reliance on GoPro as a risky prospect, but the company is continuously working to expand its revenue streams. IP security cameras contribute up to 45% of its revenue and the growth in the wearable camera market is another promising prospect for Ambarella Inc (NASDAQ:AMBA). The shares of the chipmaker were down after a report from Citron Research, which highlighted commoditization risks along with a lack of innovation at the company. However, strong quarterly results from GoPro Inc (NASDAQ:GPRO), along with positive ratings from other analysts helped the company cope with the negative slide. Philippe Laffont’s Coatue Management reported an equity position in the company at the end of the second quarter of 1.00 million shares valued at $103.17 million.

PROS Holdings, Inc. (NYSE:PRO) is another new technology addition to the portfolio of Cadian Capital, which has 2.24 million shares valued at $47.25 million. The technology company is known for offering big data software applications along with consulting services to its clients. The big data solutions company has had a difficult run so far in 2015, with its shares declining by 22.78% year-to-date. PROS Holdings, Inc. (NYSE:PRO) was able to beat the markets’ earnings expectations by $0.03 with a reported loss of $0.11 per share, while its revenue of $41.70 million was also slightly higher than Wall Street’s estimate. During the second quarter, the company’s revenue declined by 6% year-over-year and its earnings depreciated by nearly 280% in comparison with the same quarter of 2014. Archon Capital Management, managed by Constantinos J. Christofilis was a major shareholder of the company at the end of the second quarter, holding 531,930 shares valued at $11.23 million, though it slashed its position by 30% in the second quarter.

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