Serve Robotics (SERV) stock rises 10% in a week driven by strong financials and partnerships

From Nasdaq: 2024-09-24 10:40:00

Serve Robotics (SERV) shares have surged 9.9% in the past week, outperforming the Computer & Technology sector and the IT Services industry. Since its public equity offering in April, SERV shares have jumped 153.2%, driven by the growing demand for last-mile delivery of food and other items on partner platforms.

SERV reported revenues of $0.47 million in the second quarter, with a 80% jump in delivery and branding revenues. The company’s expanding robotics offering and partnerships with companies like Uber Eats and Shake Shack are expected to improve its competitive position in the last-mile delivery space dominated by DoorDash and Amazon.

To aid its long-term strategic plan, SERV has a strong liquidity position with cash and cash equivalents of $28.8 million as of June 30, 2024. The company generated $35.8 million from a public equity offering and $15 million from a private placement. It expects to deploy 250 robots by the end of the first quarter of 2025 in Los Angeles and other cities.

Despite technical indicators showing a bearish trend for SERV, the Zacks Consensus Estimate for its 2024 loss has improved, with the company having a Zacks Rank #2 (Buy) currently. However, concerns include a revenue decline in Q2 2024 and customer concentration, with one customer accounting for 74% of accounts receivable.

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Read more at Nasdaq: Serve Robotics Rises 10% in a Week: Should You Buy SERV Stock?