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iRobot - AI Stock Analysis

Analysis generated October 2, 2024

iRobot Corporation, founded in 1990, is a leading global consumer robot company that designs and builds innovative robots to enhance consumer experiences. With its flagship product, the Roomba vacuum cleaner, the company has solidified its place in the market of home automation and cleaning robotics. Over the years, iRobot has expanded its product line to include various models of the Roomba as well as other home-cleaning robots like the Braava. iRobot’s innovations aim to deliver practical, useful, and quality solutions for home automation enthusiasts.

Fundamental Analysis

For the last quarter, iRobot reported a revenue of $166 million. This represents a 10.90% increase compared to the quarter before. While this signals growth on a quarterly basis, it is noteworthy that revenue decreased by 29.68% when compared to the same quarter last year, potentially hinting at underlying issues with sales or market demand.

The net income for the last quarter stood at $71 million. However, this figure is concerning due to a staggering 920.80% decrease compared to the previous quarter. Year-over-year, there has been a 12.57% increase, suggesting some improvement on a yearly basis but raising questions about short-term profitability.

iRobot's EBITDA for the last quarter was recorded at $64 million, indicating a 547.28% decrease compared to the previous quarter. Compared to the same quarter last year, EBITDA decreased by 0.93%. These figures signal potential profitability and operational challenges.

Technical Analysis

The current stock price for iRobot is $8.39, which has increased by 14.62% over the past month, marking a short-term upward trend. However, the stock has decreased 77.87% from a year ago, which could raise red flags for long-term investors. The present trend is bullish.

The SMA10 is currently $8.16, up from a previous SMA10 of $8.05. This is indicative of a potential upward trend in the stock price. However, the RSI stands at 52.4, which is in a neutral condition, suggesting that the stock is neither overbought nor oversold at this time.

Alternative Data Analysis

From an alternative data perspective, iRobot currently lists 8 open positions, reflecting a 38% decrease in job postings over the past couple of months. This suggests the company might be focusing on improving margins or cutting costs, not typically positive indicators for growth.

Business outlook sentiment is down by 13% in the last few months, adding to the concerns about the company’s future trajectory. Website traffic to iRobot’s page stands at an estimated 1.1 million visitors, down 45%, which is a worrisome indicator of potential loss in customer interest or market reach.

iRobot's mobile app receives about 4,100 downloads daily, but this metric hasn't seen much fluctuation recently, indicating stagnation in customer acquisition. Additionally, the company's social media engagement has also shown a downward trend; Instagram followers are down by 1% to 110,000, and Twitter followers remain at 42,000 with no increase, pointing towards diminishing interest in the brand.

Finally, considering AltIndex’s AI score of 23 for iRobot, it strongly signals a "sell" recommendation based on comprehensive data analysis.

Conclusion and Recommendation

Given the multifaceted data, the overall outlook for iRobot appears to be bearish in both the short-term and long-term perspectives. Despite a recent short-term increase in stock price and revenue, the massive year-over-year declines in key financial metrics like revenue and the alarming decrease in net income and EBITDA are significant concerns. Additionally, alternative data insights like reduced job postings, a drop in customer traffic, and declining social media engagement further cast a shadow on the company’s potential.

Therefore, based on the collective fundamental, technical, and alternative data analysis, the recommendation for iRobot’s stock would be to sell, especially given the strong sell signal from AltIndex’s AI score.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.