Is the Market Excitement Over iRobot Overblown?
The recent news that Amazon.com (NASDAQ: AMZN ) wants to pursue delivering packages via drones and the decision of Google (NASDAQ: GOOG ) to purchase several robotic companies have pushed investors into iRobot (NASDAQ: IRBT ) . The company most famous for the robotic vacuum has yet to move significantly beyond home robots after several cutbacks in spending on military robots. Investors might want to be careful about rushing into the stock based on the robotic theme.
The excitement over the recent news from Amazon.com and Google sent iRobot spiking higher, but the initial enthusiasm will fade until the company can show a revolutionary product beyond the vacuum series. A few recently released robots which include an update to the popular Roomba vacuum line offer some promises, but the robots might not provide the revolutionary technology envisioned by investors.
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