Why Serve Robotics Stock Lost 22% in November

Core Insights - Serve Robotics experienced a decline in stock price due to a disappointing third-quarter earnings report and broader market concerns about an AI bubble [1][2] - The company reported a revenue of $687,000 for the third quarter, which was a 209% increase year-over-year but slightly below the estimated $691,000 [4] - Investors are focusing on Serve's long-term potential in the restaurant industry rather than short-term results, with expectations of revenue growth to approximately $30 million next year [5][6] Financial Performance - Delivery volume increased by 66% quarter-over-quarter and 300% year-over-year, indicating strong operational momentum [4] - The company reported a GAAP net loss of $33 million, widening from a loss of $20.9 million, and an adjusted EBITDA loss of $25 million [6] - Serve Robotics had $310 million in liquidity as of its latest earnings report [6] Market Expansion - Serve is expanding its market presence, having launched in Chicago and entered a multi-year partnership with DoorDash for U.S. deliveries [5][7] - The company's service area now covers 1 million households and includes deliveries from over 3,600 restaurants [7] - Future growth opportunities remain significant, although the stock is considered high-risk [7][8]