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It has been a rough year for Mobileye (MBLY), with shares down nearly 25% so far in 2025. This comes as investors react negatively to escalating global tariffs and worry about the potential for a recession.
Mobileye, largely considered to be a high-growth name, is among the stocks that are most negatively impacted. Investors tend to sell off growth-oriented names in times of chaos as their future results are more dependent on the macroeconomy. With a focus on autonomous driving technologies and advanced driver assistance systems (ADASs), Mobileye has its hands in cutting-edge technology.
Another red flag for many investors is that MBLY trades at more than 7 times trailing sales.
However, famed investor Steve Cohen of Point72 Management recently disclosed a purchase of MBLY stock. Should investors follow suit and buy the dip in this beaten-up name?
Steve Cohen Appears to Be Bullish on Mobileye Stock
Any time a notable hedge fund manager discloses a new purchase, investors pay attention. Such is the case with the recent news that Steve Cohen has entered a position in Mobileye.
According to reports, Cohen now holds more than 5 million shares of MBLY stock, worth around $75 million at current levels. This could be a sign that the “smart money” is beginning to view the world of autonomous driving technology differently under President Donald Trump’s administration.
With Elon Musk whispering in the president’s ear, investors have been hoping that the regulatory environment for companies like Tesla (TSLA) and others dealing with self-driving cars will become more favorable.
We’ll have to see how this thesis plays out. If robotaxi hype picks up, retail investors should keep an eye on MBLY stock.
What Do the Fundamentals Say?
At first glance, Mobileye appears expensive. It is a growth-heavy company in an early stage industry that has the potential to see significant future revenue growth.
However, the company’s recent financial results show revenue is on the decline, with the company’s 23% year-over-year revenue decline in the fourth quarter a cause for concern.
I think this concern is heightened by the current valuation. At more than 7 times sales and with revenue growth slowing and negative earnings, investors are right to prioritize stocks that are growing earnings and that have stronger balance sheets.
The company’s price-book ratio around 1x and its potential for positive earnings on the horizon are reasons why many long-term investors may want to purchase MBLY stock on the dip. These factors, combined with the overall growth potential of the assisted and autonomous driving technology space, appear to be enough to entice Steve Cohen.
What Do Analysts Think?
Aside from major hedge fund managers like Steve Cohen, retail investors can get a sense of where a stock is headed in part based on analyst research and ratings.
In the case of Mobileye, there are currently 23 analysts covering the company, and the broad consensus appears to be that there is upside potential.
The company has a “Moderate Buy” consensus rating and an average price target of $19.96, implying more than 30% upside potential.
The Bottom Line
I think Mobileye has been especially susceptible to market-wide shifts over recent weeks. But with the 10-Year Treasury yield coming down in recent days, continuing optimism around the potential for the Trump administration to improve regulatory requirements for the autonomous driving and robotaxi space, and a valuation that is not overly stretched, there are certainly reasons why an investor may consider MBLY now.
