Why Sonos Shares Fell 12% in January
Shares of Sonos (NASDAQ: SONO) fell 12.2% last month, according to data from S&P Global Market Intelligence. The maker of smart speakers introduced a new trade-in program for very old equipment, but the old devices will have to be made permanently unusable in order to qualify. A couple of weeks later, Sonos also announced that all technical support for first-generation devices will end in May. Each of these tone-deaf moves sent Sonos shares sharply downward.
The overarching idea is to motivate owners of old Sonos equipment to haul out their wallets for some fresh upgrades. If the carrot of a 30% discount didn't do it, perhaps the stick of leaving the old gear unsupported by the manufacturer would. Investors saw a firestorm of negative comments developing on social media regarding this one-two punch and jumped to the conclusion that Sonos was messing up its relationship with formerly loyal shoppers.
Image source: Sonos.
Source Fool.com
