Sonos shares crash as forecast fails to strike a chord
Sonos Inc (SONO.O) was set to shed more than a fifth of its market valuation on Thursday after a revenue forecast cut fueled worries that consumers were dialing down purchases of its premium speakers in a turbulent economy.
The stock was down 21% in premarket trading, on course to erase nearly all of the year-to-date gains. At least three of the seven analysts covering Sonos cut their price targets.
“While the revised guidance takes numbers lower, we have no reason to ‘call the bottom’ at this point,” said Raymond James analyst Adam Tindle.
Consumer electronics makers have taken a beating this year as people prioritize essentials over products such as laptops, speakers and smartphones in the face of rising borrowing rates and sticky inflation.
A shift to services spending from goods has also hurt the consumer hardware businesses following a pandemic boom, analysts noted.
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