Is iRobot Stock a Buy?
iRobot (NASDAQ: IRBT) is best known for consumer robots, such as the Roomba vacuum cleaner and the Braava floor mopper. It has sold over 30 million units since its founding, and its growing revenue is a testament to the popularity of its products.
However, the company has faced challenges over the last year which have little to do with COVID-19. Rising competition forced the company to cut prices. At the same time, tariff increases on products coming from China have further reduced profits. Despite the problems facing this tech stock, investors may have a case for buying iRobot at current levels.
iRobot's struggles came to a head in early 2019. Competitors such as SharkNinja, Ecovacs Robotics, and Neato Robotics emerged, taking market share. The company subsequently responded with price cuts, and CEO Colin Angle stated during an investor call that he expected competition to affect 2020 revenue and profits.
Source Fool.com
