Could the price retreat a bit, sure. People may drag down some gains (admittedly, I considered it yesterday). The problem for shorts (I am not suggesting you are short), is that they are backed into a corner with this stock. They have watched the IRBT of 2010 - 2012 fluctuate between $15 - $35 and they don't appreciate how different the company is today. IRBT has a more diverse, solid foundation, on which, they can build sustainable growth. I suspect the increase over the last two weeks was a combination of the overall market and shorts coming to this realization. I am not going to predict how high the stock will go b/c no one knows, and for the record, I do actually agree that over the next few weeks, people may take some profits...but over the next 2 yeaars, I am confident that this stock will break into uncharted territory on the charts and I am holding ground. I have held ann sold IRBT positions for the last 4 years, but this time is different....this time, longs can make some life changing money.
The future revenue stream will depend on their ability to produce innovative products at an affordable cost. The remote presence robots, on any mass scale, are still some ways off, as are many household items.
What the market appears to be seeing is technology becoming cheaper and IRBT having critical patents and expertise to monetize it. The market for their products should grow exponentially over the next decade.
agreed. growth is coming, ZERO debt...and frankly relative to some of the other 'hot growth prospects' out there (eg. 3d printing stocks) valuation is really not that unreasonable. this could double from here and with regards to growth company pricing would still only qualify as 'relatively expensive.' 50 is a nice round number by christmas.
Smartphones versus feature phones, we know how that turned out.
iRobot is now throwing robotic smart devices against old-fashioned feature devices. What can the competition do? How can Toro and Cub Cadet and Craftman and Lawn-Boy incorporate complex robotic navigation into their mowers to compete against iRobot? They'll do the same thing Nokia and Blackberry did and hope it's a fad, or that it's too dangerous, or whatever. But the fact of the matter is that the traditionals will lose marketshare and they won't be able to breach iRobot's moat.