Rambus Q2 Earnings: Hits A Memory Block, High Valuation, Low Returns (Rating Downgrade)

Jul. 30, 2024 5:38 AM ETRambus Inc. (RMBS) Stock2 Comments2 Likes
Michael Wiggins De Oliveira profile picture
Michael Wiggins De Oliveira
Investing Group Leader
(6min)

Summary

  • Rambus delivers a lackluster outlook, causing share price drop.
  • The company faces challenges despite strong prospects in DDR5 memory products.
  • Valuation at 26x forward non-GAAP operating profits offers a poor risk-reward profile for investors.

Jonathan Kitchen

Investment Thesis

Rambus (NASDAQ:RMBS) delivered a lackluster outlook that saw its share drop 10% premarket.

Case in point, Rambus delivers middle-of-the-road guidance for Q3, while its share price is inflated for what it offers. More specifically, investors are being asked to pay around 26x

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About RMBS Stock

SymbolLast Price% Chg
RMBS
38.34-0.83%
Post39.633.36%
Created with Highcharts 11.2.0Sep​'24Aug​'24Jul '24Jun​'24May​'24Apr​'24255075
Market Cap
$4.16B
PE (FWD)
19.53
Yield
-
Rev Growth (YoY)
1.99%
Short Interest
3.15%
Prev. Close
$38.66
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