Arlo stock has dropped due to lower prices, but record service revenue growth and partnerships are positive

From Nasdaq: 2025-01-07 11:47:00

Arlo Technologies’ stock has dropped by 12.9% in the past month, underperforming peers like Amazon and Logitech. The company attributes this to lower average selling prices and reduced product revenues due to changing consumer preferences.

Despite challenges, Arlo has seen record service revenue growth, thanks to a surge in paid subscribers and the successful launch of Arlo Secure 5.0 with innovative features like person and vehicle recognition.

Arlo Technologies partnered with Allstate to offer security solutions to 6 million home insurance customers, resulting in increased growth. The Arlo Total Security bundle provides 24/7 professional monitoring and essential hardware for enhanced home protection.

Earnings estimates for Arlo show positive movement, with a projected 0.59% increase in revenues for 2025 and a 36.59% rise in earnings per share. The company currently holds a Zacks Rank #1 (Strong Buy) and a Growth Score of B, offering a promising investment opportunity.

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