Why iRobot Dropped 15.4% in August
Shares of iRobot (NASDAQ: IRBT) fell 15.4% in August, according to data from S&P Global Market Intelligence, extending its post-earnings plunge from July as some analysts worried over the increasing competition in the robotic vacuum cleaner segment.
Investors may recall that iRobot stock was already under pressure before the month started. Shares plunged 20% in a single day on July 24, when the company delivered strong second-quarter results but reduced its full-year financial guidance due to concerns that the U.S.-China trade war could hamper growth for the broader home-robotics market.
That negative momentum carried forward as trade tensions persisted, leaving iRobot stock to drift lower for the first few weeks of August. But its declines accelerated on Aug. 22, when JPMorgan analyst Mark Strouse reiterated his neutral rating on iRobot stock. At the time, he pointed out that the website of iRobot competitor Shark had been updated with details on a "soon-to-be-released" robotic vacuum that includes many of the same features as iRobot's Roomba i7 model at a much lower price.
Source Fool.com
