Core Viewpoint - Serve Robotics has experienced a significant stock decline of over 50% following Nvidia's complete divestment of its shares, raising questions about potential investment opportunities ahead of its upcoming financial report [1][2]. Company Overview - Serve Robotics has developed autonomous last-mile delivery robots, utilizing Nvidia's technology, and aims to deploy thousands of these robots in partnership with Uber Eats [2][6]. - The company has achieved over 50,000 deliveries with a 99.94% accuracy rate, demonstrating its operational efficiency compared to human delivery workers [3]. Financial Performance - Serve is projected to report approximately 13.3 million, representing a further 598% increase, contingent on the successful deployment of 2,000 robots [8]. Operational Efficiency - Serve's latest Gen3 robot is five times more powerful than its predecessor, with operational costs reduced by up to 50% [4]. - The company aims to lower delivery costs to 8 [5]. Market Potential - The autonomous food delivery market is projected to reach 26.1 million in the first three quarters of 2024, following a 80 million in January through stock issuance, which is dilutive for existing shareholders and not a sustainable long-term strategy [10]. Valuation Concerns - Serve Robotics has a market capitalization of $581 million, resulting in a price-to-sales (P/S) ratio of 213.6, significantly higher than Nvidia's P/S ratio of 28.5 [11]. - The forward P/S ratio based on 2025 revenue forecasts remains at 45.1, indicating that Serve's stock is overvalued compared to established companies like Nvidia [11][12].
Should You Buy Serve Robotics Stock Before March 6?