• Symbotic’s revenues heavily rely on Walmart, with over 84% of total revenues coming from the retailer. This concentration poses risks as growth is tied to Walmart’s plans. Strategies to diversify, like partnering with Nyobolt for better batteries, are in place to reduce dependence on Walmart.
• Cirrus Logic faces similar customer concentration risks, with Apple making up 89% of its sales in fiscal 2025. Any decline in iPhone sales could impact Cirrus Logic’s revenue. The company needs to address weakness in the Android market to sustain revenue from that channel.
• Symbotic’s stock performance has been strong, outperforming the industry in terms of price performance. However, the company’s valuation is at a premium compared to industry averages. Analyst estimates for fiscal 2026 and 2027 earnings have remained stable, but the stock currently carries a Zacks Rank #5 (Strong Sell).

Read more at Nasdaq: Should Investors Worry About Symbotic’s Walmart Exposure?