Why Investors Have to Own iRobot: Howard Lindzon
The robot trend is in motion, says Howard Lindzon, CEO and co-founder of Stocktwits. And iRobot (IRBT) is "the Intel of robot brands."
iRobot, a company that is perhaps most famous for the automated vacuum machine Roomba, has incredible potential for expansion Lindzon says.
"They don't have a huge brand name...but they have been around 10 years and have done a billion dollars in sales," he explains. "iRobot has got real business with the military and with the governments but behind the scenes they're taking all of those applications and trying to figure it out for consumers."
Lindzon sees iRobot's market cap increasing to $10 billion from its current $1 billion in a few years.
"When this robot trend hits, which it will with drones and consumer products, iRobot is going to be the company," he says.
Large institutions looking to invest in robots won't be able to pile into multiple small cap stocks, says Lindzon. Because of liquidity, they'll have to buy into a larger company and that company will be iRobot. "When this robot trend hits, iRobot is going to be the brand that institutions grab, and they're going to be grabbing in size for the next five to ten years."
iRobot reported earnings of $0.28 per share in the second quarter and revenue of $130.4 million. Analysts were expecting earnings of $0.19 per share.
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