Fossil Group (NAS:FOSL) — mrkt cap $65mm; Price $1.22; EV/EBITDA NA
SPECULATIVE POSITION INITIATED. Fossil Group is undergoing a serious reset—exiting smartwatches, cutting deep into SG&A, and pivoting toward a more focused, wholesale-driven model. The company is closing ~50 retail stores, exiting smaller international markets via distributor transitions, and concentrating on core geographies like the U.S. and India. Early signs of progress are encouraging: Q4 margins expanded 630 bps, adjusted operating income turned positive, and another $100mm in SG&A cuts are planned for 2025. Concerns around the licensing business have eased somewhat with the extension of the Michael Kors agreement through 2027. With ~$160mm in liquidity, structural cost reductions underway, and a tighter operating model, we’re initiating a speculative equity position. Upside is substatntial if new management continues to execute. For income-focused investors, the baby bonds maturing in 2026 (Ticker:FOSLL) look appealing. YTW is ~30% and investors clip a 10% income yield—these exchange-traded notes are now better supported by improving financial discipline.
Amplitude Inc (NAS:AMPL) — mrkt cap $1.3B; Price $10.33; EV/EBITDA NA
MORE RESEARCH NEEDED. Amplitude is a digital analytics platform used by both SMBs and enterprises, including companies like Instacart. It helps customers understand user behavior across websites and apps—what features users engage with, where they encounter friction, and what drives retention—serving as the system of record for the digital customer journey. While Amplitude initially focused on SMBs, it has struggled to gain traction in the enterprise segment, due in part to broader macroeconomic challenges and a lack of experienced leadership. Revenue growth has stalled, and the stock has declined by over 80% from its 2021 peak. At the enterprise level, Amplitude competes with Adobe, Google Analytics, and various bespoke data warehouse solutions. Further analysis is needed to evaluate the product and execution in the current landscape.
Ambarella (NAS:AMBA) — mrkt cap $2.1B; Price $50.61; EV/EBITDA NA
PASS. Ambarella specializes in developing low-power, high-resolution video compression and computer vision processing semiconductors. The company offers highly integrated, scalable chip solutions supported by comprehensive software development kits, enabling customers to efficiently create differentiated products. Its technology is used across a broad range of applications, including automotive cameras, security systems, and consumer devices, delivering advanced intelligent video capabilities. As the wave of robotics and edge AI devices emerges, the demand for low-power vision processing is expected to grow significantly. NVIDIA is well aware of this and has been making aggressive moves into this space with its Jetson platform, introducing the potential for strong competition. While we are positive on the trends Ambarella is positioned to benefit from, the current valuation, approaching 8x revenue, is difficult to justify. We will revisit the company should the stock undergo a pullback.