3 Robotics Stocks to Sell in August Before They Crash & Burn

Core Viewpoint - The global industrial automation market is expected to grow at a CAGR of 8.3% from 2024 to 2031, but the robotics sector may face challenges due to economic slowdown and reduced capital expenditures, leading to potential vulnerabilities in certain robotics stocks [1]. Group 1: Dynatrace (DT) - Dynatrace operates in the software performance niche, focusing on application performance management (APM) and cloud-native monitoring, which are critical for automation processes [3][4]. - The company holds a 3% market share in the APM market and faces stiff competition from major players like Microsoft, Amazon, Google, IBM, and Cisco, making it a candidate for selling [5]. - Despite a 19% year-over-year revenue increase in Q2 2024, net income showed minimal growth at 1.1%, indicating potential stagnation [6]. Group 2: PROCEPT Biorobotics (PRCT) - PROCEPT Biorobotics is known for its AquaBeam Robotic System, which uses waterjet technology for treating benign prostate enlargement (BPH), a condition affecting up to 90% of men over 80 [7][8]. - In Q2 2024, the company reported 47 sales of the AquaBeam system, generating $53.4 million in revenue, reflecting a 61% annual growth, but it has not yet achieved profitability [9]. - The company reported a net loss of $25.6 million, slightly higher than the previous year's loss, indicating ongoing financial challenges [10]. Group 3: Zebra Technologies (ZBRA) - Zebra Technologies connects employees with assets across various sectors, including logistics and healthcare, and made a significant acquisition of Fetch Robotics for $290 million to enhance its warehouse automation capabilities [11][12]. - Competitor Symbotic may offer better exposure in the market, as it utilizes AI-powered software for optimizing robotic operations and has established partnerships with major retail chains [13][14]. - ZBRA stock has increased nearly 20% year-to-date, priced at $320, while Symbotic's stock has decreased significantly, presenting a potential high-growth opportunity [15].