Symbotic (NASDAQ: SYM) and Global-e Online (NASDAQ: GLBE) are members of the 2022 class of IPOs. The 1st came to market as a reverse merger, while the other went the traditional IPO route with NASDAQ. Both are involved in developing, marketing, and selling technology to the retail industry and are getting the analysts' attention. Both stocks have seen some volatility, and that is sure to continue. However, the technical outlook is bullish and could result in a significant upside for short-term traders and long-term investors.
Symbotic Makes Robots For Retailers
Symbotic manufactures an end-to-end robotic warehouse management tool. The system is the culmination of technological advancements, including machines, software, and expertise. The system is robotic and connected, making it an investment in the IoT, edge computing, machine learning, and artificial intelligence arenas. The company is in a hyper-growth phase, although growth is slowing. The most recent report had revenue up more than 200%, and the guidance expects the coming quarter to produce roughly 50% of growth or about $260 million. Walmart (NYSE: WMT), BTW, has a large stake in the company.
The FQ2 results were what the analysts wanted to see. They’ve had the stock pegged at a Moderate Buy since the IPO and have been driving it higher this year. The results sparked 7 price target increases and 1 initiated coverage at Outperform from William Blair. The only bad news is that the consensus of $27.85 is below the current price action, but it is trending higher. The consensus is up nearly 50% since the IPO and will likely increase this year. Among the potential catalysts is the nearness of profitability. The company’s loss narrowed significantly in the recent quarter, and that should continue as sales build momentum and leverage grows.
The chart looks good. The stock broke above the consensus level earlier this year and has retreated to test it for support. Support looks strong at the $24 level and may increase the market to another new high. If not, the market may consolidate at this level until another catalyst emerges.
Global-e Leverages Cross-Border Business
Global-e Online Ltd unlocks the power of cross-border business. The company operates a platform that enables and accelerates global cross-border commerce, focusing on DTC. This is a dual benefit for businesses due to the hurdles of operating across country lines and the margin impact of DTC. The company isn’t as large as Symbotic but growing at a high double-digit rate, with the most recently reported quarter coming in at up 70% YOY.
The analysts tracking data is mixed but favorable to shareholders. The analysts rate the stock a Buy with a price target about 2% above the current action. The negative is that the consensus is down compared to last month and last year, which may be due to old data falling out of the data set. The most recent targets include a reiterated target and 3 boosted targets that average $38.50. That’s another 900 basis points above the current action and could lead this market higher.
The chart is favorable. It shows the market is bottoming and on the cusp of reversal. Resistance at $36.25 holds the market back for now, but upward pressure appears sufficient to break through. A break to new highs could get the stock back up to the $50 range.