Why AI Robotics Stock Symbotic Jumped 16% This Week After Hitting a 52-Week Low

Source Motley_fool

After hitting a 52-week low of $16.32 per share on April 4, Symbotic (NASDAQ: SYM) stock bounced back and hit a weekly intraday high of 16.1% through 10:30 a.m. ET Friday, according to data provided by S&P Global Market Intelligence.

Turns out, investors lapped up the opportunity to buy shares in the artificial intelligence (AI) automation company amid the stock market rout.

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Why Symbotic stock crashed in recent months

Symbotic develops fully autonomous mobile robots controlled by AI-enabled software to automate warehouses, distribution centers, and supply chains.

Earlier this year, Symbotic acquired Walmart's advanced systems and robotics business and struck a deal with the retail giant to develop and deploy automation systems for 400 accelerated pickup and delivery centers at Walmart stores over the next few years.

Walmart paid $230 million at the deal's closing and will pay another $290 million to Symbotic. Symbotic believes the deal could add $5 billion to its backlog in the long term and open up a new market with an addressable size of over $300 billion in the U.S. alone.

Symbotic stock surged after the Walmart deal but gave up its gains soon after as its operational performance left investors asking for more.

Is this a golden opportunity to buy Symbotic stock?

After growing its revenue by 47% year over year in the fourth quarter, Symbotic reported only 35% revenue growth for its fiscal 2025 first quarter, ended Dec. 31, 2024. Its net loss remained steady, too, at $19 million, and it guided for only around 30% revenue growth for Q2.

However, with Symbotic stock hitting a 52-week low and still down a whopping 55% in one year as of this writing, smart investors saw an opportunity to buy the stock this week.

Symbotic's long-term relationship with Walmart, which dates back to 2015, and a backlog of $22.4 billion as of Sept. 30, 2024, makes it an intriguing AI and robotics play for the long term. There could be bumps along the way though, especially amid the ongoing tariffs and trade war that could disrupt supply chains, increase costs, and slow down business. Symbotic sources raw materials from across the world, including China, Germany, Italy, Sweden, and Mexico.

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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Symbotic and Walmart. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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