Sonos is a home audio firm specializing in wireless and multi-room sound systems and is often compared to Bose. The company sells a range of sleek, connected speakers, subwoofers, soundbars for TVs, and more, enabling people to build on their home audio collections. The company has benefited from a more significant shift to modern, connected devices that are often much smaller than their older peers.
Sonos stock struggled after its 2018 IPO. The stock then took off from the market’s coronavirus lows, alongside countless other tech stocks and consumer businesses that succeeded during rough conditions. SONO jumped from around $9 in March 2020 to over $15 by July.
In November, the stock skyrocketed after it crushed Q4 estimates and announced a new $50 million repurchase program. The stock made another huge leap following strong Q1 FY21 results in February. Overall, SONO is up 255% in the past year and 50% in 2021. The run includes a 20% fall from its mid-April records, with it down from $44 to $34.85 a share at the close Monday, which is a price tag some investors might consider cheap.
Playing SONO for near-term growth after earnings comes with risks, heightened by the recent volatility and tech selling. Yet, longer-term investors might want to consider the consumer technology stock for its ability to expand and stand out within an industry that’s growing louder.
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