ARLO - Arlo: Scarce Value Play In An Expensive Market
2024-06-21 11:43:04 ET
Summary
- Arlo continues to be an attractive value play that stands out in an expensive stock market.
- The company achieved tremendous Q1 results that showed strong services revenue growth.
- Sequential adds in both subscribers and ARR eclipsed even Q4, which had the benefit of holiday sales.
- The company is making strides toward its long-term targets of hitting ~10 million subscribers, ~$700 million in ARR, and 25%+ operating margins by 2030.
As the stock market continues to defy gravity and soar to new all-time highs with little regard to both lingering macro headwinds and geopolitical tensions, it's wise for investors to slowly pivot away from risky momentum plays and rotate more into value. This doesn't mean giving up on growth entirely: but focusing on "growth at a reasonable price" stocks that are a bit out of the mainstream limelight....
Arlo: Scarce Value Play In An Expensive Market