$IRBT IRobot potentially undervalued, or am I missing something?

Why is Irobot dropping so much lately?

Everyone loves their products, the roombas, great reviews on Amazon.

With robotic vacuum market expected to grow at 20-23% CAGR till 2027, even though IRBT is losing market share (60–>52–>48% market share), management expects 17% CAGR to 2024.

-Low PE, Low PS, good outlook for future growth, low debt, growing revenue YOY.

They acknowledge their competition throughout their 10-Ks, however, they have an edge on competitors especially with brand loyalty and their software.

They aim to expand their product line with the acquisition of Aeris (air purifier) and potentially smart lawnmowers too, the growth potential is huge.


– Tariffs exemption paused which hurts their margins

– Competition of low priced robotic models (weakened moat of superior brandname)

Now back to the question, why are they dropping so much lately? I can't get my head around this, might be to do with 98% institutional ownership and 42% Short Float?


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