Key Takeaways Symbotic posted 26% revenue growth in Q325, driven by its $22.4 B backlog.Coherent's revenues rose 23% in fiscal 2025, fueled by AI datacenter and telecom recovery.COHR trades at a cheaper valuation than SYM and benefits from a strong product portfolio.Symbotic (SYM) and Coherent Corp. (COHR) are well-established names in the Zacks Technology Services industry. Symbotic, based in Wilmington, MA, develops, commercializes, and deploys innovative, comprehensive technology solutions for improving ...

Group 1: Market Overview - Five stocks are highlighted for potential buying opportunities before November, driven by high short-interest and strong market fundamentals [1] - These companies are positioned within the AI revolution, expected to achieve market-leading growth and improved shareholder value over the next five to ten years [2] Group 2: SoundHound AI - SoundHound AI (NASDAQ: SOUN) has a current price of $12.38, with a 52-week range of $4.32 to $24.98 and a price target of $13.36 [3] - The stock has a high short interest of 33% of the float, despite a 7% decrease in short interest at the end of July [3] - The company has shown hyper-growth exceeding 200% due to expanding verticals and client counts, although growth concerns remain [4] - Analyst consensus is a Moderate Buy, with price target revisions suggesting a potential rise to the $18 range [5] Group 3: AST SpaceMobile - AST SpaceMobile (NASDAQ: ASTS) is currently priced at $43.93, with a 52-week range of $17.50 to $60.95 and a price target of $48.41 [8] - The stock has a short interest of approximately 30% of the float, with bullish analyst trends supporting rising price action [8] - The price target has increased by about 100% over the past 12 months, with potential to reach an all-time high of $63 [9] - ASTS is positioned to become a global leader in mobile services, driving significant growth and profitability [10] Group 4: Symbotic - Symbotic (NASDAQ: SYM) is priced at $43.53, with a 52-week range of $16.32 to $64.16 and a price target of $42.69 [13] - The stock has a short interest of 30%, down 10% from the previous report, but still near record levels [13] - Despite a Hold rating, increased coverage and a bullish price target outlook suggest potential for a 20% to 25% upside [14] Group 5: NuScale Power - NuScale Power (NYSE: SMR) is currently priced at $32.20, with a 52-week range of $6.88 to $53.50 and a price target of $34.44 [16] - The stock has a short interest of 22%, with a significant pullback following its Q2 release [17] - Analyst trends are bullish, with a price target expected to rise to $46, reflecting a more than 300% increase over the past year [18] - The MACD convergence indicates potential for a market rebound [19] Group 6: Tempus AI - Tempus AI (NASDAQ: TEM) is priced at $68.39, with a 52-week range of $31.36 to $91.45 and a price target of $67.64 [22] - The stock has a short interest of 25%, down 36% from the prior month, but still elevated [22] - Analysts rate Tempus AI as a Moderate Buy, forecasting an 80% revenue growth pace in Q3 [23]

Group 1 - Symbotic's third quarter results were weak, particularly in system starts and completions, following the acquisition of ASR from Walmart [1] - Narweena, an asset manager, focuses on identifying market dislocations due to misunderstandings of long-term business prospects, aiming for excess risk-adjusted returns [1] - The research process at Narweena emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and a long-term investment horizon [1] Group 2 - Narweena targets smaller cap stocks and markets with less obvious competitive advantages, driven by the belief that an aging population and low growth will create new investment opportunities [1] - Many industries may face stagnation or secular decline, which could paradoxically enhance business performance due to reduced competition [1] - The economy is increasingly influenced by asset-light businesses, leading to a declining need for infrastructure investments and a large pool of capital pursuing limited investment opportunities [1]

company called Symbotic, S YM. This company is automating warehouses. In fact, they are automating all 47 of Walmart's warehouses.Get rid of the people and replace them with robots. They are faster. They're more efficient.They don't make mistakes. They can work 24/7. >> What happens to all those people that just got displaced.>> They need to go find other jobs. >> Correct. And so, where are they going to find them.>> Well, I don't know. Some of them might go into construction. We've got a housing shortage.I ...

Core Viewpoint - Alithya Group (ALYAF) is currently positioned as a more attractive investment compared to Symbotic Inc. (SYM) based on various valuation metrics and earnings outlook [1][3][6] Valuation Metrics - ALYAF has a forward P/E ratio of 8.77, significantly lower than SYM's forward P/E of 228.75 [5] - The PEG ratio for ALYAF is 0.63, indicating a favorable valuation relative to its expected earnings growth, while SYM's PEG ratio stands at 7.63 [5] - ALYAF's P/B ratio is 1.24, contrasting sharply with SYM's P/B ratio of 68.13, further highlighting ALYAF's superior valuation [6] Analyst Outlook - ALYAF holds a Zacks Rank of 1 (Strong Buy), reflecting a positive earnings estimate revision trend, while SYM has a Zacks Rank of 3 (Hold) [3] - The strong earnings outlook for ALYAF contributes to its Value grade of A, whereas SYM has a Value grade of F, indicating a less favorable investment profile [6]

Core Viewpoint - Symbotic (SYM) has experienced a significant stock price increase of 134.5% year-to-date, outperforming its industry peers due to the artificial intelligence trend and strong technical indicators [1][6]. Group 1: Stock Performance - SYM shares have outperformed industry peers, with Coherent Corp. gaining 21.9% and MediaAlpha declining 6.8% in the same period [1]. - Technical indicators show that SYM is trading above its 50-day moving average, indicating strong upward momentum and price stability [3]. Group 2: Financial Metrics - Symbotic has a backlog of $22.4 billion, with expectations to recognize nearly 11% of its remaining performance obligations as revenues in the next 12 months and 56% in the following 13-60 months [8]. - Revenues increased by 26% year-over-year, with expectations for fourth-quarter revenues in the range of $590-$610 million and adjusted EBITDA between $45-$49 million [9]. Group 3: Operational Efficiency - Faster deployment times suggest improved installation processes, leading to decreased labor hours per project and fewer rework incidents [10]. Group 4: Valuation and Risks - SYM's current valuation is considered stretched, with a forward price-to-sales ratio of 12.09X, higher than its industry peers [11]. - The company's reliance on Walmart as its largest customer poses customer concentration risks, despite Walmart's investment in Symbotic [13].

Core Viewpoint - Symbotic's transition to next-generation storage technology may lead to short-term revenue fluctuations despite strong earnings performance [1][5] Financial Performance - Symbotic reported revenue of $592.2 million, exceeding expectations and reflecting a year-over-year increase of 25.9% [3] - The company posted a net loss per share of $0.05, which was $0.04 worse than expectations [3] Future Guidance - For the upcoming fiscal fourth quarter, Symbotic guided revenue between $590 million and $610 million, indicating minimal sequential growth [4] - Management attributed potential revenue hiccups to the launch of a new storage technology, which is expected to temporarily impact revenue recognition [5] Market Reaction - Shares of Symbotic fell 15.7% following the earnings report, likely due to profit-taking after a significant stock increase of 124% year-to-date [2][1] - The stock's valuation is considered high, trading at over 14 times this year's revenue estimates and over 223 times adjusted earnings estimates [8] Industry Position - Symbotic is recognized as a leader in next-generation warehouse automation, with a focus on physical AI solutions [7] - Despite potential short-term challenges, the company is seen as executing well in its market [7]

Financial Data and Key Metrics Changes - Revenue increased by 26% year over year to $592 million, driven by solid progress across 46 systems in deployment and expansion of operational systems [12][10] - Net loss for the third quarter was $32 million compared to a loss of $27 million in the previous year [12] - Adjusted EBITDA was $45 million, significantly up from $3 million in the previous year [12] - Backlog remained strong at $22.4 billion, slightly down from $22.7 billion last quarter due to revenue recognized [12] Business Line Data and Key Metrics Changes - Software revenue more than doubled year over year to $8.1 million, while operational services revenue grew 54% year over year to $24.9 million [15] - System gross margin showed significant year-over-year improvement due to strong cost control and project execution [15] Market Data and Key Metrics Changes - The company processed over 6.5 million cases in a single day, indicating strong operational throughput [6] - Customer response to the next-generation storage structure has been very positive, with projects signed in the fiscal third quarter [10] Company Strategy and Development Direction - The company is focused on driving innovation across its technology stack, including the introduction of a next-generation storage structure that increases storage density and reduces on-site assembly parts by over 90% [9][10] - The new structure is expected to enhance scalability and accelerate deployment across various supply chain aspects [9] - The company aims to unlock higher margins and long-term value creation through its innovative product offerings [10] Management's Comments on Operating Environment and Future Outlook - Management anticipates an adjustment in the timing of several previously planned deployments to support the transition to the next-generation storage structure, which may moderate growth in the near term [20] - For fiscal 2025, the company expects revenue between $590 million and $610 million and adjusted EBITDA between $45 million and $49 million [21] Other Important Information - The company has a healthy balance sheet with cash and equivalents of $778 million, down from $955 million in the previous quarter [16] - The transition to a new CFO, Izzy Martins, is set to take place on August 9, 2025 [11] Q&A Session Summary Question: Can you quantify the next-generation storage technology in terms of installation times and retrofit opportunities? - Management does not expect Walmart to retrofit existing systems but believes the new structure will allow for smaller projects and additional capabilities [26][27] Question: What is the expected growth trajectory for new starts? - New starts are expected to step up again now that the design is commercially available, with a historical average of mid to high single-digit new starts [90] Question: What are the implications of the new storage structure on cost and margins? - The new structure is expected to save customers money due to reduced space requirements while allowing the company to achieve higher margins [37] Question: How does the company view the competitive environment? - Management is aware of new technologies but feels confident in their market position and expects to grow market share [69] Question: What is the expected impact of the new storage system on backlog and customer acquisition? - Most new systems going forward are expected to be associated with the next-generation structure, which is anticipated to accelerate customer acquisition [54][55]

Financial Data and Key Metrics Changes - Revenue increased by 26% year over year to $592 million, driven by solid progress across 46 systems in deployment and expansion of operational systems [11][12] - Net loss for the third quarter was $32 million compared to a loss of $27 million in the previous year [11] - Adjusted EBITDA was $45 million, significantly up from $3 million in the previous year [11] - Backlog remained strong at $22.4 billion, slightly down from $22.7 billion last quarter due to revenue recognized [11] Business Line Data and Key Metrics Changes - Software revenue more than doubled year over year to $8.1 million, while operational services revenue grew 54% year over year to $24.9 million [13] - System gross margin showed significant year-over-year improvement due to strong cost control and project execution [13] Market Data and Key Metrics Changes - The company processed over 6.5 million cases in a single day, indicating strong operational throughput [5] - Customer response to the next generation storage structure has been very positive, with projects signed in the fiscal third quarter [9] Company Strategy and Development Direction - The company is focused on driving innovation across its technology stack, including the introduction of a next generation storage structure that increases storage density and reduces on-site assembly parts by over 90% [8][9] - The new structure is expected to enhance scalability and accelerate deployment across various supply chain aspects [8] - The company aims to unlock higher margins and long-term value creation through the new storage structure [9] Management's Comments on Operating Environment and Future Outlook - Management anticipates an adjustment in the timing of several previously planned deployments to support the transition to the next generation storage structure, which may moderate growth in the near term [19] - For fiscal year 2025, the company expects revenue between $590 million and $610 million and adjusted EBITDA between $45 million and $49 million [20] Other Important Information - The company has a healthy balance sheet with cash and equivalents of $778 million, down from $955 million in the previous quarter [14] - The transition to the new storage structure is expected to allow for faster scaling over time [19] Q&A Session Summary Question: Can you quantify the next generation storage technology in terms of installation times and retrofit opportunities? - Management does not expect Walmart to perform retrofits but believes the new system can run alongside the old structure, allowing for more efficient use of space [25][26] Question: What is the expected growth trajectory for new starts? - New starts are expected to step up again now that the design is commercially available, with a historical average of mid to high single-digit new starts [86] Question: What are the implications of the new storage system on customer acquisition? - The new structure is expected to accelerate new customer acquisition, with the highest level of customer dialogue ever [92] Question: How will the new storage structure impact backlog and installation timelines? - All new starts this quarter are associated with the next generation structure, and installation is expected to begin mid fiscal year 2026 [50][51] Question: What is the outlook for the ASR portion of the business? - Development revenues for ASR were up sequentially, and this level is expected to be maintained for the next couple of quarters [100][101]

Company Overview - Symbotic is an AI-enabled technology platform transforming the supply chain[17] - The company's AI/software platform drives actionable insights from goods and location data to improve inventory optimization and order accuracy[19] - Symbotic has a transformative technology platform with 46 systems in deployment and 42 operational systems[22, 23] - The company has issued 650+ patents[23] Financial Highlights - Symbotic is experiencing YoY revenue growth of approximately 36%[23] - The company has a total backlog of $22.4 billion[23] - Symbotic is generating positive free cash flow[23] - In FY24, Symbotic's total revenue reached $1.788 billion, and adjusted EBITDA was $62 million[59, 62] - Symbotic reported a GAAP net loss of $84.672 million in FY24[62] Market Opportunity - The company is targeting large addressable markets, including a $432 billion one-time system sales opportunity in operator-owned warehouses[25, 26] - Symbotic has a $500 billion+ "outsourced" incremental annual warehouse-as-a-service opportunity through GreenBox[26]