Core Insights - Serve Robotics Inc. (SERV) shares have declined 9.1% over the past month, underperforming the Zacks Computers - IT Services industry's increase of 1.1% and the broader tech indices [1][8] - The stock's recent decline is attributed to profit-booking, supply chain challenges, rising tariff costs, and concerns over the company's cost structure and profitability path [2][8] Financial Performance - In Q1 2025, GAAP operating costs rose to $13.5 million from $12.9 million in Q4 2024 and $8.3 million year-over-year, driven by investments in R&D and market expansion [7] - Non-GAAP operating expenses nearly doubled year-over-year to $9.5 million, contributing to an adjusted EBITDA loss of $7.1 million [9] - The total cost of revenues increased by approximately $1 million due to startup expenses linked to fleet scale-up and new market launches [8] Market Position and Competition - Serve Robotics is expanding its Gen 3 robot fleet, with 250 new robots added in Q1 2025, leading to a 75% increase in delivery volume quarter-over-quarter [17] - The company is facing downward earnings estimate revisions, with 2025 loss per share estimates widening from 83 cents to 93 cents over the past 60 days [11] - In contrast, competitors like C3.ai, Evolv Technologies, and Cognizant are projected to see earnings growth of 9.8%, 32.4%, and 6.7% year-over-year, respectively, in 2025 [12] Valuation and Analyst Sentiment - SERV is currently trading at a forward 12-month price-to-sales (P/S) multiple of 26.63X, significantly above the industry average of 19.46X [13] - Analysts maintain a bullish outlook, with an average price target of $16.40, indicating a potential upside of 49.8% from the last closing price of $10.95 [20] - The average brokerage recommendation for SERV is 1.00, indicating unanimous support from covering firms [21] Strategic Initiatives - Serve Robotics is focused on autonomous delivery at scale, with plans to monetize its software and data platform, which is expected to generate recurring revenues starting in Q2 2025 [18][19] - The company has $198 million in cash and plans to self-fund its 2,000-robot rollout, aiming for $60–80 million in annualized revenue once the fleet reaches full utilization in 2026 [19]

Expansion highlights joint commitment to providing sustainable, efficient last-mile delivery solutions nationwide MIAMI, April 2, 2025 /PRNewswire/ -- Coco Robotics, the world's leading food delivery robotics company, announced today that it's launching operations in Miami, starting with delivery partner Uber Eats (NYSE: UBER). This announcement marks Coco's entry into the Southeast market. The service will initially launch in the Wynwood neighborhood and Downtown Miami, with plans to expand to Brickell and ...