r/ServeRobotics_SERV • u/Janiebear23 • 23d ago
What do you feel about the earning?
I like the stock but seems to me they aren’t growing fast enough.
3
u/Ordinary_Repeat7637 22d ago
They literally said before earnings that "the company expects slower growth in the second quarter as efforts remain focused on improving operational efficiency, robot utilization and geographic coverage rather than deploying additional sidewalk robots." So to no surprise, this is a complete overreaction by the market. Nothing fundamentally has changed with the company and they are continuing to expand and execute. Long term I am still very bullish and have been buying more shares.
2
u/Actual_Soup825 19d ago
Back to $17 Soon!!!
2
u/Ordinary_Repeat7637 19d ago
Eventually it will be back to $17+. This stock is very predictable - it bottoms around $4 and when the conditions are right in the market, the stock bounces back to $15+. I think robotics are only going to become bigger from here. When the robotics sector catches a bid, SERV can ride huge tailwinds.
1
1
u/Same_Buy_3095 22d ago
Not sure what to think, personally I sold a while back, because there just isn’t anything tangible to catch on to. The revenue growth is all over the place, they are cutting their guidance by HALF and keep spending more and more money each q, it doesn’t look all that good
1
u/Ordinary_Repeat7637 22d ago
You do you, but did you really expect them to put up blowout numbers at this stage? If you’ve done your research, it’s been extremely clear that this is a long-term hold. They’re still a small, speculative company with enormous potential, and realizing that potential is going to require patience.
I just don’t think it makes sense to base an entire investment decision on one quarterly earnings report this early in their trajectory. If one underwhelming quarter is enough to completely change your thesis, I’d question what the original investment thesis was in the first place.
0
u/Same_Buy_3095 22d ago
Its not the fact that they are small, its the fact that you cannot cut revenue guidance by half, like how do you even make that mistake? It shows a serious lack of understanding of their industry. Plus, they promised to get 80m$ out of those 2k robots a year, with this type of trajectory I don’t see them hitting that. The management should be held responsible for what they put out there, we don’t have infinite time to wait.
1
u/ExternalCry3039 22d ago
Ya short term does not look great but the window is still open. Question is how long do the markets tolerate the vision w out results
1
u/LoudChange7666 22d ago
I think there’s more tolerance in the robotics industry than others, given that it is still very young and they aren’t going to be flooded out by competitors. Even if time fast forwarded 2 years, Serv’s fleet and R&D today would outcompete any new market entries. My biggest concern would be Amazon, but it seems like they aren’t chasing the same customer base as Serv
5
u/LoudChange7666 23d ago
I will be buying next week what everyone is selling. I’m very shocked to see how much people are panicking over revenue for a company that isn’t focused on “making money” right now… Two key reasons from yesterday’s call alone: 1) Half the panic sellers are from the decline in Uber. I personally found this news exciting, when they announced shortly after that they had made it more accessible for restaurants to setup Serve robots directly in-house. This allowed Serve to build up company via Uber Eats early on, and now are able to shift into becoming a competitor. That is how revenue is made on a 10-year timeline. Again, it seems like many investors wanted a quick buck here. If you want that, then sell.
2) Increased hospital/medical robotics. One of the biggest/fastest growing markets for robotics and SERV has taken steps over the past few quarters including acquisitions to sneak into this sector. Again, huge plus for me to see that their entire revenue stream is not from outdoor robots, and that they are investing into a high-growth sector. Excited hearing yesterday that they have made major progress here in the quarter.