Trade of the Day: Ambarella Inc (NASDAQ:AMBA)

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A major product announcement by Apple Inc. (NASDAQ:AAPL) used to be a big deal, but Wednesday’s unveiling of the iPhone 7 in New York had been so well telegraphed in advance that it was a yawn.

Instead, let’s turn our attention to a much more significant trend: surveillance technology.

Increasingly, elected officials are turning toward more surveillance as the solution to crime and terror threats despite obvious objection from civil libertarian groups like the ACLU. Defense contractors are at the forefront of this new wave, and they are likely beneficiaries, as are specialized camera makers.

Chip maker Ambarella Inc (NASDAQ:AMBA) is the leading maker of the imaging devices used. Its high-definition image systems are also used in cop-cams, drones, experimental autonomous cars and GoPro Inc (NASDAQ:GPRO) cameras. Shares pulled back after an earnings report that was rock-solid but slightly disappointing in terms of guidance. Buyers should come back.

Trade of the Day: Ambarella Inc (NASDAQ:AMBA)Buy AMBA at $67.50 limit, good till canceled.

Jon Markman operates the investment firm Markman Capital Insights. He also offers a daily trading advisory service, Trader’s Advantage, and CounterPoint Options, a service that helps individual traders make steady, consistent profits with volatility-related instruments. Follow him on Twitter for his latest take on markets and innovation.

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