Home > Sound > 24Bit Media Players > Are Sonos Directors Getting Set To Eat Tacos Three Times A Day?

Are Sonos Directors Getting Set To Eat Tacos Three Times A Day?

Sonos whose share of the Australian market is “decreasing”, not “increasing” according to retailers is now trying to work out their future after their share value nosedived 22% during the past four days.

The nosedive that was tipped by ChannelNews came after the US sound Company reported a first quarterly report that shocked investors.

The Company not only failed to impress the market they are now sending Australian Sonos owners a bizarre email that said “From the start, Sonos’ s headquarters has been located in Santa Barbara, California—a small beachside town that moves at its own pace. Around here, people walk slower, do yoga on the sand and have been known to eat tacos three times a day”

They then went on to claim “So when it came time for us to head to Times Square to announce that we were becoming a publicly traded company (SONO), we wanted to approach it a bit differently”

They did do things differently by going into a float having never delivered a profit and then after floating announcing that revenues had fallen 7% during the last quarter”

They also posted a much larger loss than analysts were targeting.

Brent Thill at Jefferies is telling clients that investors were hoping for Sonos to issue more robust guidance. It’s calling for 14% to 16% top-line growth in the current quarter, in line with Wall Street expectations.

He sees the stock meandering until the market gets greater clarity on how new products will shape the Companies future up against new networked products from Bose, Amazon, Google, Harman Kardon and Apple.

The problem for Sonos is that they are now having to settle for lower price points given the product mix they now sell Vs when they had a monopoly on the networked audio market.

Today Sonos is competing against the tech giants putting out heavily subsidized voice-activated digital assistants that double as entry-level home audio systems.

The company is in a tough spot, but last month’s public debut finds their directors who were desperate to get a float away flush with IPO cash.

I am tipping that probably won’t be long before Sonos is floated as an acquisition candidate so that the current directors who have failed over more than a decade to deliver profits can bail out soak up the Californian sun, walk slower, do yoga on the sand and eat tacos three times a day.

You may also like
Local Sonos Sales Tank Again As Overall Revenues Fall Over 10% IKEA THe Bright Spot
Breaking NEWS:Sonos Sales Slump As Brand Gloss Rubs Off
Sonos To Take On Foxtel Hubbl + TV Brands In Content Box Market
Sonos Shares Surge On Headphone Hint
Sonos Slammed By Judge Over Dodgy Patents After Loss To Google