TSP Weekly Tech Stock Update—March 30, 2024
This Week: Mobileye stock rebounds, Jefferies bullish on SNOW, JP Morgan ups MNDY target, BRZE tumbles on FY'25 guide, CrowdStrike partners with Rubrik, TEAM stabilizes, Twilio's AI Copilot & more.
Hello from Rob…
—Shares of Mobileye (MBLY, $32.15), a provider of chips for driver-assistance systems, have rebounded 37% from the 52-week low of $23.49 reached in late February. In early January, the stock plunged 24.5% in one session (creating a gap on the price chart that runs up to $39.34) after the company sharply cut its 2024 revenue outlook due to its Tier-1 auto customers having an abundance of inventory.
At the time, Mobileye said the excess inventory totaled 6 million to 7 million units of EyeQ SoCs. The company tied the oversupply to decisions made by Tier-1 customers to build inventory because of supply chain constraints in 2021 and 2022. Plus, lower-than-expected production in 2023 at certain OEMs caused inventory to pile up.
Mobileye said it expected customers to use the “vast majority” of the excess inventory in Q1, which would limit demand for new chips in the quarter. The company forecasted Q1 revenue to be down about 50% year over year.
Some investors scooped up Mobileye shares on the recent pullback because they like the company’s long-term growth story as a leading player in autonomous driving technology, which is still in the early stages. Today, basic driver-assistance systems provide the bulk of Mobileye’s revenue, but the company’s SuperVision and Chauffeur products are expected to be the primary growth drivers three to four years down the road.
*Inside This Issue: Atlassian Shares Start To Stabilize After Sharp Pullback
—Paid subscribers will receive the April 2024 PDF of Tech-Stock Prospector (TSP #266) via email on Tuesday, April 9.
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