Mark Holder
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Mobileye: Q1'16 Quick Take

Mobileye (MBLY) reported that Q1 numbers topped analyst estimates, but the market doesn't care. The company reported the following key numbers:

  • Earnings of $0.15 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.14; 
  • Revenues rose 64.9% year/year to $75.2 mln vs the $73.2 mln Capital IQ Consensus. 

The bottom line is that when the market cap ended yesterday at roughly $8 billion and the company only reports quarterly revenue of $75 million, the stock will trade based off momentum. The momentum is now extremely negative on Mobileye and won't likely improve until the valuation is more inline with the financials. 

At this point, avoid the stock until a retest of the previous lows below $25. 

Disclosure: No position