I tend to agree... it’s a ‘park n hold’ stock. Like other small tech stocks BUD has struggled in the Dec quarter. The company’s challenge is the competitive landscape has changed in the last 6-12 months. Loads of competitors in the market landscape now. Every one of them claims their solution is better than everyone else’s. Customers are taking time to trial different solutions before progressing with ‘slowly slowly’ implementation. I think major corporates are worried small tech companies will disappear and hence they aren’t rushing to buy IoT products.
Very few (if any) in the IoT space have succeeded to capture large market share. Most big IoT deals are for in-house developed solutions using OEM purchased products. SaaS really hasn’t taken off. Channel partner selling strategies simply haven’t worked that well for BUD or others.
Somebody needs to wrap-up a few of these IoT stocks and consolidate for a much bigger play.
BTW: for those holding similar stocks, it’s an interesting exercise to compare the market cap / revenue outcomes across IoT related tech stocks. It certainly shows BUD has a lofty valuation... or very poor sales performance.
BUD Price at posting:
9.5¢ Sentiment: Hold Disclosure: Held
