Diamonds and Dogs
Fitbit Inc. (FIT)
Shares of Fitbit are once again trading higher, closing up 14% crossing the $40 mark at one point before pulling back. The fitness device company has seen a lot of hype during its recent initial public offering, and has even been called "one of the hottest IPOs of the year." Since starting trading on Thursday, the company's stock has risen more than 50%. This begs the question of whether or not the company is overvalued. Will Fitbit see a drop in its price, or will it continue to rise?
Ambarella, Inc. (AMBA)
Ambarella, the California-based developer of high definition semiconductor solutions, is the dog of the day after falling 20% to $94.36. The cause of this drop was a research report by Citron Research, which called Ambarella's share price "ridiculous." Citron also issued a $60 price target on AMBA, implying about a 37% downside for the stock. The short-selling research firm claims that there is no possible way for Ambarella to support their stock price. AMBA may have to do a little extra work to justify its high share price and valuations.