Here’s Why These Five Stocks Are Making Headlines Today

Traders Sell Ambarella Despite Solid Results

Ambarella Inc (NASDAQ:AMBA) reported EPS of $0.54 per share on revenue of $65.1 million for its fiscal second quarter. The results beat the consensus estimates by $0.16 per share and $0.82 million, respectively. Gross margin rose to 67.1% from 65.3% due to strong execution and the company said it expects revenue growth for fiscal 2017 to be between flat and down by 5%. Despite the solid results, shares of Ambarella have lost 5%. Hedge funds weren’t that bullish on the tech company in the second quarter. According to our records, 13 funds were long Ambarella Inc (NASDAQ:AMBA) at the end of the second quarter, compared to 20 funds a quarter earlier.

Gap August Sales Decline

Gap Inc (NYSE:GPS) is in the spotlight today after the retailer reported soft sales numbers for August. For the four-week period ended August 27, GAP’s overall comparable sales declined by 3%, while net sales retreated by 2%. In terms of specific brands, comparable sales at Gap’s Banana Republic brand slid by 10% year-over-year, while comp sales at the Old Navy brand inched up 1%. Gap shares will need comp sales to begin improving to do well in the long run. The number of investors from our database with holdings in Gap Inc (NYSE:GPS) rose by nine quarter-over-quarter to 32 at the end of June.

Downgrade at Carnival

Carnival Corp (NYSE:CCL) shares are 5% in the red after Morgan Stanley downgraded the travel stock to ‘Underweight’ from ‘Equalweight’, citing neutral to negative booking trends in the sector in August. In addition, the analysts at the investment bank found that more travel companies were offering promotions and incentives in the time period, which is typically another indication of weaker-than-expected demand. The analysts have a $48 price target, down from their previous $54 target. Kerr Neilson‘s Platinum Asset Management owned almost 5 million shares of Carnival Corp (NYSE:CCL) at the end of June.

Disclosure: none