🚨 Dramatic drop in Symbotic shares!
On Wednesday, shares of Symbotic $SYM, a company that makes artificial intelligence robots for warehouse automation, plunged by 36 %. Today, however, they're gaining more than 12 %! The main reason for the drop was newly revealed accounting errors that cast doubt on its financial results for fiscal year 2024.

Company Symbotic discovered discrepancies in revenue recognition, particularly in the cost overruns of some projects. These errors will reduce revenue and earnings for fiscal 2024 by USD 30-40 million.

Deteriorated outlook:
The company revised its Q1 2025expectations :
Revenue: from US$505 million to US$490 million.
Adjusted EBITDA: Down from US$29 million to US$14 million, a decline of more than 50 %.

While the decline in revenue is modest, the decline in the EBITDA, a key measure of profitability, is huge. Combined with the postponement of the annual report and eroded investor confidence, the drop strikes me as the right market reaction.
Symbotic now has until December 12th to submit a corrected report SECto avoid further sanctions. Until then, however, the stock is likely to be volatile and attract the attention of day traders and speculators alike.

💡 Long-term perspective:
Still in the company Symbotic potential through its combination with Walmartwhich is not only a key customer but also a key investor. However, accounting problems signal that the company needs to strengthen its internal controls to restore market confidence.

🤖 Robotics: the market of the future
Robotics is a field with enormous growth potential, thanks in particular to advances in artificial intelligence. Symbotic faces challenges, but is still worthy of attention. The company uses chips from Nvidia for its autonomous systems.

Anyone following this company? What are your thoughts on the industry?