NEW YORK, NY / ACCESSWIRE / September 14, 2017 / iRobot had a bad day in Wednesday trading as traders became more alarmed about rival SharkNinja's entrance into the robotic vacuum cleaner market. It was short seller Spruce Point Capital Management that pointed out SharkNinja could pose a serious threat to iRobot. Shares of Sirius also saw red despite any major news. It was last month that ESPN and Sirius launched ESPNU Radio targeted at college students who love sports.
RDI Initiates Coverage on:
Sirius XM Holdings Inc.
iRobot shares plummeted on Wednesday, closing the day down 15.65%. Trading volume was roughly ten times higher than usual yesterday. While the company did not have any significant news to explain the fall, it was the concern over a rival entering the market that made traders worry. According to Spruce Point Capital Management, a short-seller, the SharkNinja's entrance into the robotic vacuum cleaner market could be a threat for iRobot. Spruce Point has a "strong sell" rating on the stock. The firm said, "SharkNinja has entered the robotic vacuum market with a 'functionality at a reasonable price' strategy to compete directly with the Roomba. Given Shark's historical success, we assume that their entry into the market will translate into sales and margin pressure for iRobot beginning with Q4 2017." SharkNinja has three versions of its Shark Ion Robot for sale and is distributed at major retailers including Wal-Mart, Target, and Amazon.
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Sirius XM Holdings shares entered red territory on Wednesday and closed the day down 3.04%. Volume at around 26 million shares was above average. It was at the end of last month that the Walt Disney Company's (DIS) ESPN announced that ESPN and Sirius XM (SIRI) had launched ESPNU Radio. With a target of college students interested in sports, ESPNU covers college sports and is available all day long. With the launch, ESPN and Sirius extended their broadcast distribution agreement for five years. The channel will also simulcast ESPN shows such as College Gameday, which will be on Saturday mornings during the college football season.
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