Out Fox The $treet

Sonos (SONO) is up sharply following FQ4 results that beat estimates. The smart speaker company easily beat EBITDA targets as their new smart speakers had a strong quarter. Source: Seeking Alpha  The biggest issue with the company is that Sonos still produced a $15 million loss last year and the company only monetizes a hardware solution. The story still isn't that compelling until Sonos figures out how to make money off the voice-assisted speakers, instead of the tech giants. Disclosure: No position. Please review the disclaimer page for more details. 

Sonos (SONO) is trading down about 14% in after-hours trading. Not sure what investors were thinking in pushing this recent IPO stock up over $21 prior to the 1st earnings report. My original research was highly negative on the stock. The speaker company actually slightly beat analyst estimates for FQ3'18. The key was the expectations for declining numbers. A recent IPO isn't going to hold up when revenues are down YoY by nearly 10%. The company even has negative adjusted EBITDA. Just avoid Sonos in the competitive voice-assisted speaker market. Disclosure: No position mentioned. Please review the disclaimer page for more details.