The stock has been "crushed" in recent months, down over 50% from its 52-week highs, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment.
The company reports earnings Thursday. Ambarella now has several catalysts to separate itself from depending on GoPro's (GPRO) - Get Report revenue, Cramer explained, including drones and security. That's why Cramer said shares of Ambarella can go higher.
Not doing as well is Deckers Outdoor (DECK) - Get Report , which is down 4.5% after analysts at Piper Jaffray cut their estimates. Cramer said analysts are turning less positive on the stock because it appears the company will resort to more promotions this holiday season.
A lot of cold-weather retail companies are out of luck this year with such mild weather leading into winter, Cramer said. "It's a shame, but that's what happens in retail. There's so many things that can go wrong," he concluded.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.