CE 100 Index Dips 3.3%, Led by iRobot’s Plunge on Doubts About Its Future

It was another week of volatility on Wall Street –—and another week that saw our CE 100 Index subsets marching in lockstep.  

All components of the Index were lower as trade wars and tariffs roiled markets, and overall, the CE 100 names were 3.3% lower, which was worse than had been seen in the overall markets.  There have been notable headlines surrounding the impact of macro concerns on end-market demand.

iRobot shares plummeted 47%, as the Live segment of the CE 100 Index was the pillar to post the steepest drop, declining by 9.1%

The company said in its most recent earnings report that it had “substantial doubt” about its ability to continue as a going concern — which, we note, is Wall Street language that raises the specter that the firm faces an uncertain future. The company cited uncertainty tied to consumer demand, competition, macroeconomic conditions and tariff policies.

The company’s board of directors has initiated a formal strategic review to consider a potential sale or strategic transaction, refinancing the company’s debt and other alternatives, iRobot said.

The company also said that since implementing its operational restructuring plan in January 2024, it has reduced its headcount by more than 50%, lowered its sales and marketing expenses, decreased inventory and cash outflows, and significantly reduced the cost of its products. The company launched its restructuring in January 2024 when a planned acquisition by Amazon fell through.  In the most recent quarter, revenues declined to $172 million from $307.5 million in the year-ago December period.

Delta shares dipped by more than 12%.  The airline’s shares sank in the Move segment of the CE 100 Index, which declined by about 6%. Due to softer domestic demand, Delta revised its March quarter outlook downward compared to the guidance it provided on Jan. 10. The airline now expects its total revenue to grow 3% to 4% year over year during the March quarter, down from its earlier guidance of 7% to 9% — its operating margin to be 4% to 5%, down from its previous guidance of 6% to 8%.  Consumer and corporate confidence has waned on increased macro uncertainty, according to commentary from Delta.

Adobe’s 12.6% loss for the week came as the Work segment was off by 2%. The company reported earnings this past week, where fiscal first quarter revenues were up 11% in constant currency to $5.7 billion.  However, revenue guidance that topped out at $5.82 billion for the current quarter fell short of Street estimates.

Despite the overall slide, there were a few bright spots.

Peloton shares gained 13.5% even though the Be Well segment of the CE 100 Index was 0.8% lower.

Investing sites such as Investopedia noted the positive momentum as Canaccord Genuity upgraded the company’s stock to “buy” from “hold.”  In the note announcing the upgrade, analysts pointed to the contention that the firm is a “clear leader in the connected fitness industry,”  with a “loyal member base” of 6 million members. 

Nvidia surged nearly 8% on the week.

PYMNTS noted that Nvidia CEO Jensen Huang is reportedly working to make sure the chip maker has a secure foundation in case the demand driven by artificial intelligence (AI) systems slows down.  Bloomberg reported that with Nvidia’s annual conference set to be held next week, it is expected that Huang will highlight the company’s wide-ranging efforts to find “the next frontier in AI.”

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