Symbotic Inc. (SYM) Shares Drop 40% After Lowering Guidance and Reporting Revenue Recognition Error - InvestingChannel

Symbotic Inc. (SYM) Shares Drop 40% After Lowering Guidance and Reporting Revenue Recognition Error

We recently compiled a list of the 14 AI News That Broke The Internet This Week. In this article, we are going to take a look at where Symbotic Inc. (NASDAQ:SYM) stands against the other AI stocks that broke the Internet this week.

The World Trade Organization (WTO) recently released a report that examines how artificial intelligence may shape the future of international trade. The report projects global real trade growth could rise by nearly 14 percentage points by 2040 under optimistic scenarios of universal AI adoption, but only 7 percentage points under uneven adoption. Digitally delivered services could grow 18 percentage points in the best-case scenario. While high-income economies may gain the most productivity, lower-income economies stand to reduce trade costs more effectively, it contends.

Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.

However, the report also warns of growing AI divides, data governance challenges, and intellectual property concerns. It advocates for global coordination through the WTO to address these risks and ensure AI fosters inclusive, equitable trade. Based on the conclusions drawn from the report, WTO underlines that AI has the potential to reduce trade costs, reshape service trade, increase AI-related goods and services trade, and redefine comparative advantages across economies.

Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.

For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A warehouse automation system in operation, with robotic arms managing inventory efficiently.

Symbotic Inc. (NASDAQ:SYM)

Number of Hedge Fund Holders: 15 

Symbotic Inc. (NASDAQ:SYM) is an automation technology company that engages in developing technologies to improve operating efficiencies in modern warehouses. The AI business focuses on automating supply chain and warehouse operations. On November 27, the share price of the firm nosedived by close to 40% after it lowered its quarterly guidance and said it needed more time to file its annual report after finding an error in revenue recognition. The company is evaluating the financial effects of correcting the error and on internal controls over financial reporting.

Overall SYM ranks 14th on our list of the AI stocks that broke the Internet this week. While we acknowledge the potential of SYM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SYM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

 

Disclosure: None. This article is originally published at Insider Monkey.

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