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iRobot (IRBT) stock is plummeting by nearly 35% ahead of Wednesday's market close after the Roomba-maker warned about the company's "substantial doubt" of its ability to continue. This comes over a year after its deal with Amazon (AMZN) fell through
Julie Hyman and Josh Lipton report more on iRobot's negative stock moves.
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Our next trending ticker, iRobot, that stock is plunging today after it issued a warning in its earnings release that it has substantial doubt about surviving the next 12 months. So, the board starting a formal strategic review, Julie, to think through options here, potential next steps, including refinancing debt, exploring a sale. Uh, recall that Amazon, of course, abandoned plans, uh, to buy the company last year, that was after, you know, fighting with EU regulators who had threatened to block it.
Yeah, definitely, so not good news for iRobot. At the same time, the company is still pushing ahead. It introduced eight new Roombas, which is its biggest product release ever in terms of the number of products. Um, so it is helping to still hoping to still, uh, get a boost from that, and the company has been taking out some lines of credit. In fact, recently took out a line from Carlyle Group of $200 million, um, uh, a couple of years ago, but it was at a high, a high rate of interest. So,
you know, we'll end up we'll see what ends up happening with this, um, but it looks like it is possible that the company will go out of business.
And as for the financials, by the way, they reported a net loss of about $77 million Q4, revenue dropped about 44% from a year ago, year end, $134 million in cash or cash equivalents.