“Sonos, the maker of smart speakers for the home, rose as much as 9 percent in its debut trade Thursday, before quickly halving its gains,” Sara Salinas reports for CNBC. “The stock opened at $16.00, nudging the company’s implied market value just past $1.5 billion. The stock trades on the Nasdaq under the ticker symbol ‘SONO.'”
“Sonos’ competitors are also valuable partners. Sonos speakers can play music from Amazon, Apple and Google’s respective streaming services,” Salinas reports. “‘Nobody thought we could put all the competitive streaming services on one platform,’ Sonos CEO Patrick Spence told CNBC’s ‘Squawk Box’ Thursday ahead of the debut trade. ‘I see no reason that those partners won’t continue to want to put their services on really the best multi-room home system.'”
“The company’s initial SEC filing revealed a critical flaw in its business model, which subjects it to Amazon’s whims on what the internet giant decides to do with its Alexa voice recognition technology,” Salinas reports. “Sonos has said it plans to incorporate Google’s Assistant in its products too.”
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MacDailyNews Take: Sonos is boxed in from all angles by much larger, much more powerful players. One false move and…
Sonos is currently trading at $17.2644 +$2.26 (+15.10%).
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