NEW YORK (TheStreet) -- Shares of GoPro (GPRO) are climbing after Ambarella (AMBA) , which provides chips for processing video, reported stronger than expected results last night. GoPro develops mountable and wearable cameras.
WHAT'S NEW: Ambarella reported second quarter earnings per share of 37c, versus analysts' consensus estimate of 28c. The company's revenue came in at $47M, compared with the consensus outlook of $44.67M. "We are delighted with our second quarter financial results," said Ambarella CEO Fermi Wang "We achieved revenue of $47M reflecting the success of our HD and Ultra-HD camera solutions in the expanding IP security camera, UAV and wearable sports camera markets," Wang added.
ANALYST REACTION: Ambarella's results indicate that GoPro's near-term trends are tracking at least in-line with its guidance, wrote Piper Jaffray analyst Sean Naughton in a note to investors today. The analyst, who noted that Ambarella is a key GoPro supplier, raised his price target on GoPro to $60 from $48 and kept an Overweight rating on the shares.
PRICE ACTION: In early trading, GoPro rose 3% to $54.50, while Ambarella jumped 8% to $39.
Shares of Akamai (AKAM) are advancing after UBS began coverage of the stock with a positive view, calling the company "the Google of Internet Infrastructure." Akamai provides infrastructure for delivering content over the Internet.
WHAT'S NEW: UBS analyst Steven Milunovich initiated coverage of Akamai with a Buy rating in a note to investors today. Like Google (GOOG), Akamai relies on sophisticated algorithms, the analyst stated. Increased demand for Internet media delivery could cause the Internet content delivery sector to perform better than expected, Milunovich believes. Akamai's strong reliability is difficult to match, which should enable it to fend off competition in the space, according to the analyst. Moreover, Milunovich is upbeat on the company's new security and cloud initiatives. He set a $70 price target on the shares.
PRICE ACTION: In mid-morning trading, Akamai rose nearly 1% to $60.91.
Reporting by Larry Ramer.