Stock Performance and Market Reaction - Mobileye's stock lost more than half its value last year due to sales pressure from customers carrying excess inventory and a broader industry slowdown in China and Europe [2] - The stock fell 7.7% to $15.65 on Friday and declined 28% over the week amid a broader downturn for U S stocks [2] - Investors were unimpressed by the company's presentation at the CES consumer electronics trade show, leading to a significant drop in share value [8] Technical Analysis and Key Price Levels - The stock's relative strength index (RSI) fell from overbought conditions to below the 50 threshold in less than a week [3] - Crucial support levels to watch are around $15, $12, and $10.50, with a major overhead area near $24 [4][10] - A breakdown below the ascending channel's lower trendline and 50-day MA could see the shares decline to around $15 [10] - Selling below $15 could bring the $12 level into play, with further downside potentially triggering a fall to $10.50 [7] Industry and Company Developments - The company faced challenges due to uncertainty surrounding global self-driving regulations [2] - CEO Amnon Shashua's address at CES did not provide updates on commercial wins, disappointing investors after promising driving assistance technology was unveiled in December [5] - The stock has trended higher within an orderly ascending channel since mid-September but recently found significant resistance near the pattern's upper trendline and the 200-day moving average [6]

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This hidden gem stock could power the autonomous driving future.Autonomous driving is improving rapidly and one company could supply chips and software for tens of millions of vehicles around the world. That company is Mobileye (MBLY -10.51%) and Travis Hoium gives an overview of the company's potential in the video below.*Stock prices used were end-of-day prices of Jan. 7, 2025. The video was published on Jan. 8, 2025. ...

Investors interested in Automotive - Original Equipment stocks are likely familiar with Continental AG (CTTAY) and Mobileye Global (MBLY) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, ...

Core Viewpoint - The comparison between Continental AG (CTTAY) and Mobileye Global (MBLY) indicates that CTTAY currently offers better value for investors based on various financial metrics and outlooks [1][3]. Valuation Metrics - CTTAY has a forward P/E ratio of 9.47, significantly lower than MBLY's forward P/E of 81.43, suggesting that CTTAY is more attractively priced [5]. - The PEG ratio for CTTAY is 0.40, while MBLY's PEG ratio is 11.90, indicating that CTTAY is expected to grow earnings at a more favorable rate relative to its price [5]. - CTTAY's P/B ratio stands at 0.85, compared to MBLY's P/B of 1.21, further highlighting CTTAY's undervaluation relative to its book value [6]. Investment Grades - CTTAY holds a Zacks Rank of 2 (Buy), reflecting a positive earnings outlook, while MBLY has a Zacks Rank of 3 (Hold), indicating a less favorable position [3][7]. - The Value grade for CTTAY is A, whereas MBLY has a Value grade of F, underscoring CTTAY's superior valuation metrics [7].

While Mobileye Global Inc. (NASDAQ: MBLY ) likely has a bright future in the auto tech sector, the company faces some tough headwinds over the next year, or so. The stock has run too much off the recent $10Mark leads the investing group Out Fox The Street where he shares stock picks and deep research to help readers uncover potential multibaggers while managing portfolio risk via diversification. Features include various model portfolios, stock picks with identifiable catalysts, daily updates, real-time ale ...

Group 1 - Mobileye's share price has rebounded due to Q3 results showing sequential growth despite challenges from delayed adoption of advanced solutions [1] - Narweena, an asset manager, focuses on identifying market dislocations and believes in achieving excess risk-adjusted returns through secular growth opportunities in markets with entry barriers [1] - Narweena's investment strategy emphasizes company and industry fundamentals, targeting deeply undervalued stocks with a high risk appetite and long-term horizon [1] Group 2 - The aging population, low population growth, and stagnating productivity growth are expected to create new investment opportunities distinct from past trends [1] - Many industries may face stagnation or secular decline, which could paradoxically enhance business performance due to reduced competition [1] - The economy is increasingly influenced by asset-light businesses, leading to a declining need for infrastructure investments and a limited set of investment opportunities driving up asset prices [1]

Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their profitability is expected to improve significantly over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] Group 2 - Michael has over 10 years of experience analyzing companies in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] - He leads the investing group Deep Value Returns, which offers insights through a concentrated portfolio of value stocks, timely updates, weekly webinars for live advice, and support for both new and experienced investors [2] - The Deep Value Returns community is described as active, vibrant, and kind, with easy access via chat [2]

Financial Data and Key Metrics - Q3 revenue increased by 11% sequentially compared to Q2, indicating normalized inventory levels at customers [5] - Year-over-year revenue decline in Q3 was fully accounted for by a 9% reduction in EyeQ volumes [6] - Operating expenses annualized at slightly over $1 billion in Q3, with expectations to be below this level in 2025 due to efficiency actions [7] - Operating cash flow was $126 million in Q3, with similar performance expected in Q4 [7] - Gross margin declined by 1 point, mainly due to lower EyeQ ASPs and higher EyeQ-related costs per unit, partially offset by higher SuperVision gross margins [25] Business Line Data and Key Metrics - Shipments to top 10 customers were down 4% globally, outperforming OEMs' overall production decline of 9% in Q3 [6] - Volume to automakers outside the top 10, mainly domestic China OEMs, was down around 50% [6] - SuperVision volume in Q4 is expected to be around 15,000 units, with half coming from Q4 [31] - EyeQ volumes for 2024 are expected to be between 28.4 million and 28.8 million units, with SuperVision volumes between 110,000 to 120,000 units [30] Market Data and Key Metrics - China represented about 20% of overall revenue in Q3, split between EyeQ units to local China OEMs (3%), EyeQ units to non-Chinese OEMs producing in China (12%), and SuperVision for vehicles sold in China (5%) [32] - In Q4, China is expected to represent a similar percentage of revenue, with SuperVision units for vehicles sold in China representing about 2% of revenue [33] Company Strategy and Industry Competition - Strategic objectives include securing long-term ADAS position with core customers, deploying EyeQ5-based SuperVision in China, and developing EyeQ6-based products [8][9] - The company has achieved follow-on ADAS design wins from all top 10 customers, extending business into the early 2030s [11] - Regulatory environment is creating tailwinds, with end-of-decade testing protocols expected to require more sophisticated ADAS systems [12] - The successful launch of SuperVision in China has led to interest from global customers, including Volkswagen Group [13][14] Management Commentary on Operating Environment and Future Outlook - The company expects advanced products to lead to a major acceleration of growth beginning in the second half of 2026 [15] - Management remains confident in converting pre-design win engagements into production agreements, citing C-suite endorsement and OEM commitment [15] - The company is increasingly confident in its AI-driven software stack and EyeQ6 High execution, which is driving progress towards design wins [16] Other Important Information - The company will host a Capital Markets Day in Munich in December, featuring demonstrations of current and future technologies [19][20] - The company has posted detailed presentations on its technology approach, including its compound AI methodology, on its YouTube page [18] Q&A Session Summary Question: SuperVision and Chauffeur volumes for 2025 [35] - The company expects 2025 to benefit from resolution of inventory digestion in the first half of 2024, with a focus on top 10 customers' production growth or decline [36][37] - Visibility on 2025 SuperVision volumes is limited due to volatility, with more details expected in January or at the investor day in December [40] Question: Core ADAS growth in western customers [42] - The company expects to outgrow top 10 customers' global production by mid-single digits due to ADAS adoption growth and increasing market share [43] - Regulatory push for more sophisticated ADAS systems is expected to drive ASP growth in the coming years [46] Question: Customer engagements with advanced solutions [49] - No decisions have been made against the company in the past 90 days, with continued progress in advanced product engagements [49] - OEMs are securing necessary components for advanced solutions, indicating strong commitment [50] Question: Inventory levels and cyclical environment [53] - Inventory levels have normalized, with Q3 and Q4 reflecting market demand [54][55] - Production decreases in some OEMs were offset by better performance from China local OEMs [56] Question: 2026 program launches and take rates [57] - The company is on track with project milestones for 2026 launches, with more details to be provided at the Capital Markets Day [57][58] Question: Intervention thresholds for autonomous driving [60] - The company is working towards an intervention rate of 1000 hours for the camera subsystem in EyeQ6, with further improvements expected with active sensors [62] - A comprehensive safety outlook will be published, with more details at the Capital Markets Day [61] Question: Competitive pressures from Tesla [65] - Tesla's Robotaxi Day has reinforced the viability of Robotaxis, with the company highlighting its own Robotaxi activity and partnerships [65][66] - OEMs are increasingly interested in advanced ADAS systems, with the company well-positioned to meet future demands [69][70] Question: 2025 SuperVision volume trends [73] - The current run rate is a good starting point for 2025, with upside potential from new customers and downside risks from Chinese OEMs [74] Question: Earnings power and R&D funding [77] - The company's Q3 OpEx of $1 billion is sufficient to meet future goals, with no need for significant increases in 2025 [79] - The company has a strong cash position of $1.4 billion to support growth and acquisitions [83] Question: Emerging market chipsets [85] - The company is working on cost-optimized systems for emerging markets, with production readiness expected within a year [87] - Progress has been made in India, with the company well-positioned to lead the market [89] Question: Sensor evolution over the next decade [90] - Imaging radar is seen as a key sensor, with production on track for next year [91] - The company is using cameras, radar, and LiDAR in its current systems, with potential for future optimization [92] Question: Zeekr's in-house system [96] - Zeekr's in-house system has similar performance to the company's SuperVision but at twice the cost [97] - The company continues to benefit from its relationship with Zeekr, particularly in building REM in China [99] Question: Challenges in building REM in China [100] - The company has been compliant with local standards and will continue to work with local map providers to ensure compliance [101] Question: Competitive environment at higher autonomy levels [102] - As autonomy levels increase, the competitive environment is expected to decrease due to the complexity of achieving high precision and safety [103][104] - The company's technology and execution capabilities give it a strong competitive advantage [106] Question: SuperVision volumes for Q3 [111] - SuperVision volumes for Q3 were around 30,000 units [111] Question: Waymo's 150,000 rides per week [113] - Waymo's success is seen as encouraging for the Robotaxi industry, with the next challenge being economies of scale [114][115] Question: EU tariffs on Chinese OEMs [117] - The EU tariffs were expected and have already been reflected in the company's metrics [118] Question: ASP drop and EyeQ mix [120] - No significant changes in ASP trajectory are expected, with volatility in EyeQ mix due to inventory issues [121] - EyeQ6 Lite is not expected to cannibalize SuperVision shipments, as it targets a different market segment [124]

Core Viewpoint - Mobileye Global reported quarterly earnings of $0.10 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, but down from $0.22 per share a year ago [1][2] Financial Performance - The company achieved revenues of $486 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.88%, but down from $530 million year-over-year [3] - Mobileye has surpassed consensus EPS estimates three out of the last four quarters and has topped consensus revenue estimates four times over the last four quarters [2][3] Stock Performance - Mobileye shares have declined approximately 71.3% since the beginning of the year, contrasting with the S&P 500's gain of 21.9% [4] - The current Zacks Rank for Mobileye is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $494.15 million, and for the current fiscal year, it is $0.22 on revenues of $1.65 billion [8] - The outlook for the Automotive - Original Equipment industry, where Mobileye operates, is currently in the bottom 25% of Zacks industries, which may impact stock performance [9]