Which stocks are attractive for investing in IoT and robotics

iRobot, the firm that designs robotic devices for companies, owner of the famous “Roomba”, has posted losses of almost 287 million dollars (269 million euros) during last year, compared to the net profit of more than 30 million dollars (28 million euros) recorded in 2021.

The data come from the financial information published by the company, which will begin to adjust its workforce, something that will affect 8 percent of its employees.

Specifically, the U.S. manufacturer will carry out a reorganization that involves the departure of more than 80 employees, 8 percent of its team, specifically “through the simplification of various functions throughout iRobot,” the company said.

With these new policies, the company estimates to realize cost savings of about $15 million (14 million euros), in addition to taking care of a negative impact of $5 million (4 million euros) in the first three months of this year.

iRobot: revenues and profits

During the last fiscal year, iRobot posted losses of 287 million dollars (269 million euros), compared to the net profit of 30 million dollars (28 million euros) recorded a year earlier, and revenues reached 1,184 million dollars (1,108 million euros), a drop of 25 percent.

In the last quarter of 2022, the multinational founded in Bedford, Massachusetts, had posted losses of 85 million dollars (77 million euros), compared to the loss of 30 million dollars (28 million euros) recorded in this period of the previous year.

On the other hand, revenues fell by more than 20 percent to 358 million dollars (335 million euros).

In the middle of last year, the technological Amazon had agreed with iRobot for its purchase for the value of 1,700 million dollars (1,591 million euros), which included the firm’s debt.

Robotics as an investment opportunity

When it comes to making investments, a good market segment to consider is technologies related to smart homes.

The so-called “Internet of Things” (IoT) is playing an increasingly important role, as it allows automating household tasks and making our lives easier (who wouldn’t want that).

You can invest in stocks of companies related to IoT and robotics, which is also a growing industry that is helping to solve household tasks.

One of these companies is, precisely, iRobot.

IRobot’s flagship product is Roomba, a vacuum cleaner that can “navigate” a room, clean carpets and other surfaces without human intervention.

It is an excellent example of how IoT and robotics are changing our lives, making it easier for us to keep our homes clean and tidy (and there are companies and actions behind these developments).

Shares of robotics companies

According to recent sales statistics, iRobot’s revenue for the fourth quarter of 2021 was $466 million, representing a 30 percent increase compared to the same period in 2020.

In addition, the company’s net income for the same period was $54.8 million, up from $8.9 million in 2020.

These figures show that demand for iRobot’s products is on the rise and that the company was doing well in terms of profitability until the advent of 2022 and the problems of the global economy.

Amazon’s acquisition of iRobot in 2021 is expected to provide even more growth opportunities for the company. The acquisition was seen as a strategic move as the firm looks to expand its smart home device offerings.

With the ecommerce giant’s broad customer base and distribution network, iRobot can reach more customers and further increase its revenue (there are investment opportunities there).

Before it was impacted by the war in Ukraine, iRobot was forecasting 18 percent revenue growth by 2022, and also expected to generate between $3.05 billion and $3.15 billion in sales in all of last year.

Those expectations were based on continued growth in the smart home device market and increasing demand for robotic solutions in household tasks. But it was not as strong that increase and must now recalculate.

Investing in IoT and robotics stocks

iRobot is not alone in the list of robotics and IoT companies that offer attractive investment opportunities.

Boston Dynamics, for example, is a robotics company whose most popular product is “Spot,” a four-legged robot that can climb stairs, traverse uneven terrain and perform all sorts of tasks.

Boston Dynamics was bought by Hyundai in 2020 and its parent company’s stock has performed extremely well since then (with the exception of what happened in 2022). The company is expected to continue to grow as demand for its robots increases.

Another interesting company to make long-term investments in IoT and robotics is Nvidia, a technology firm that specializes in graphics processing units (GPUs) for gaming and artificial intelligence.

Its GPUs are used in a wide variety of applications and the company is seen as one of the potential big winners of the artificial intelligence boom in 2023.

One company that cannot go unmentioned is Siemens, the German holding company that has operations in a wide range of industries, including robotics and IoT.

The company’s shares have performed more than decently and are expected to continue on that growth path as the German company expands its operations in those fields. Siemens shares are at an unbeatable entry point.

Indirectly, one can invest in Amazon, as it is betting on IoT and robotics with its purchase of iRobot. The company’s acquisition of Roomba is just one example of its commitment to these fields.

Although in 2022 it did not have a good time, no one doubts that Amazon’s shares, in the long term, are a great investment.