Nvidia-Backed Serve Robotics Pops On Q2 Earnings: Everything You Need To Know
Portfolio Pulse from Adam Eckert
Serve Robotics Inc (NASDAQ:SERV) shares surged in after-hours trading following the release of its Q2 financial results. The company reported higher-than-expected revenue of $468,375 but a larger-than-expected EPS loss of 27 cents. Serve Robotics also saw significant year-over-year growth in daily supply hours and active robots. The company commenced manufacturing on a 2,000-robot fleet and expanded agreements with Magna and Ouster. Serve ended the quarter with $28.8 million in cash and plans to deploy 250 additional robots in Los Angeles by Q1 2025. NVIDIA Corp (NASDAQ:NVDA) holds a 10% stake in Serve Robotics.
August 13, 2024 | 9:15 pm
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POSITIVE IMPACT
NVIDIA holds a 10% stake in Serve Robotics, which reported strong Q2 results and significant operational growth. This could positively impact NVIDIA's investment value in the short term.
NVIDIA's 10% stake in Serve Robotics means that positive developments in Serve's business could enhance the value of NVIDIA's investment. The strong Q2 results and operational growth of Serve Robotics are likely to have a positive short-term impact on NVIDIA's stock.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Serve Robotics reported Q2 revenue of $468,375, beating estimates, but an EPS loss of 27 cents, missing expectations. The company saw significant growth in daily supply hours and active robots, and commenced manufacturing on a 2,000-robot fleet. Shares rose 11.38% in after-hours trading.
The positive revenue surprise and significant growth in operational metrics are likely to boost investor confidence, leading to a short-term increase in stock price. The EPS miss is a negative but is outweighed by the strong operational performance and future growth plans.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100