IRBT - Why iRobot Stock Zoomed Higher on Wednesday
2024-05-08 12:03:05 ET
iRobot (NASDAQ: IRBT) investors had a great Wednesday morning as shares gained 10.7% compared to a modest drop in the S&P 500 . However, the consumer tech company, which specializes in robotic home cleaning devices, is still in deeply negative territory for the year. Its shares are down by more than 70% in 2024 so far, while the market is up 9%.
Wednesday's boost came as investors became a little less pessimistic about iRobot's near-term growth prospects following the release of its first-quarter earnings report after the close Tuesday.
Investors had low expectations for the company heading into the earnings report. Amid rising competition, demand for iRobot's core cleaning products has been slumping for several quarters. Also, shoppers have pulled back on spending in this category, too, after sales soared during the early stages of the pandemic. Unfortunately, those negative trends persisted in Q1.
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Why iRobot Stock Zoomed Higher on Wednesday