Now, Symbotic (SYM +2.99%) – a rather peculiar name, isn’t it? – had a bit of a surge last year, a whopping 150.9% if you believe the chaps at S&P Global Market Intelligence. They’re building these automated warehouse systems, see, powered by what they call ‘artificial intelligence.’ Sounds frightfully clever, but let’s not get carried away. They’re essentially building robotic butlers for warehouses, and the question is, will anyone actually need a robotic butler, or will they just trip over it and cause a dreadful mess?
How They Wriggled into Momentum
The stock did rather well for most of 2025, but then it went absolutely bonkers in November, shooting up like a startled jackrabbit. They reported a 26% jump in revenue and a 72% boost in gross profit. Impressive, perhaps, but numbers can be awfully misleading, like a magician’s trick. They also ended the year with a tidy pile of cash – $1.3 billion, they say – and a backlog of orders worth $22.5 billion. That’s almost ten times their yearly earnings. A mountain of promises, if you ask me, and mountains are awfully good at crumbling.
These systems they build are meant to sort and stack things in warehouses. They managed to nearly double the number of these contraptions operating to 48. A good trick, but building things is the easy part. Keeping them running, that’s where the real challenge lies. It’s like building a house of cards – impressive until the slightest breeze comes along.
Things, they claim, are getting even better. Hmph.
In February, they announced their first-quarter results for 2026. They’ve got 51 systems running now, with 57 more being installed. Revenue went up 29%, gross profit jumped 65%, and the cash pile swelled to $1.8 billion. But here’s the curious bit: they actually made a profit – $13 million, to be precise – after losing $17 million in the same period last year. A small victory, perhaps, but let’s not declare them champions just yet.
They’ve been making some interesting moves, acquiring Walmart’s robotics business (Walmart, that enormous beast!), and signing a deal to build automated delivery systems for 400 of their stores. They’ve also landed a new customer, Medline, a medical supplies giant. This is clever, diversifying beyond their reliance on Walmart. It’s like a greedy badger deciding to raid more than one garden.
Medline’s addition is a significant step. Until now, Symbotic’s business revolved around retail and Walmart. Now, they’re proving their robotic butlers can work in other industries. A good sign, but let’s not forget that even the most versatile butler can’t cook a decent meal if the kitchen is a disaster.
Then there’s Exol, their joint venture with SoftBank. They call it ‘warehouse-as-a-service.’ Sounds frightfully complicated. It’s a six-year contract worth nearly $11 billion, with a potential market of $500 billion. A truly enormous number, but numbers, as we’ve established, are often misleading.
Should You Buy This Curious Contraption?
Now, here’s the tricky part. Symbotic’s shares have fallen nearly 30% in the last three months. Why? They issued a whopping 10 million new shares at a discount, upsetting investors. It’s like offering a perfectly good cake, then suddenly announcing it’s half the size and twice the price.
They claim this cash will allow them to deploy more systems and develop new products, like their next-generation storage systems. They also plan to expand geographically and acquire other companies. They recently bought Fox Robotics, a specialist in automated forklifts. A clever move, but acquiring companies is like collecting stray cats – it can quickly get out of hand.
For long-term investors, this price correction might be a good entry point. They’ve diversified beyond Walmart and are now profitable. But remember, a ship can right itself after a storm, but it doesn’t mean it’s not taking on water.
Don’t worry about their 20% revenue growth projection for the second quarter. Management warned about it last year and expects growth to accelerate as they deploy their new storage systems. It’s a bit like a magician announcing a trick that’s already been spoiled – it loses its magic.
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2026-02-05 19:24