Author Topic: Interesting stock article about Sonos  (Read 159 times)

Offline sleepyguy24

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Interesting stock article about Sonos
« on: August 10, 2018, 10:24:13 AM »
I normally get e-mails from Seeking Alpha and they are about stodgy dividend producers or just hate about GE. I got this one not to long ago and was pleasantly surprised.

Sonos: Love The Product, Not The Stock

https://seekingalpha.com/article/4194183-sonos-love-product-stock?app=1&isDirectRoadblock=true

Offline richidoo

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Re: Interesting stock article about Sonos
« Reply #1 on: August 10, 2018, 11:10:00 AM »
Ha! I didn't even know they were public. Thanks

Another casualty of the cellphone.

Online tmazz

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Re: Interesting stock article about Sonos
« Reply #2 on: August 10, 2018, 12:46:48 PM »
This is just another example of how brutal it is to play in the consumer space. competition drives prices down to the point of razor thin margins. driving many companies with good products out of business.

It really is pretty amazing that a company can generate 1 billion dollars in revenues from the sale of over 4 million units and still post a 55 million dollar loss. And this froma product that is arguably the market leader for its product type.

We constantly hear people complaining about the high markups that are so common High End audio products, but unfortunately those kind of margins are what it takes to survive in what is essentially a boutique industry with very small production runs. If Sonos can't cover their costs and make a profit wit sales volumes of 4 million units, think how hard it is for a sale high end outfit to survive with production runs in the tens of thousands (if they're lucky.)

Yes their markups are quite high compared to other types of products, but the reality is that providing them with those kind of per unit margins is the only way we are going be be able to keep them (and the hobby) going in the future.
Remember, it's all about the music........

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Offline richidoo

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Re: Interesting stock article about Sonos
« Reply #3 on: August 10, 2018, 03:38:39 PM »
I was in a trendy clothing store in SF last month. Everything made in the USA. They had two little Sonos' speaker boxes 6" cubes hidden behind the hanging clothes against the walls, one in the front and one in the back. They really filled that 1500sf store with good sounding music. Made me wonder why do I need a stereo system? That's what happens to your mind after 5 days in SF.

Online tmazz

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Re: Interesting stock article about Sonos
« Reply #4 on: August 10, 2018, 04:33:33 PM »
Rich you were in SF???

Please tell me you made time to stop at Aomeba Reccords.  [-o<

It is a former 39 lane bowling alley that is wall to wall records and CDs. A place not to be missed.






This veiw is probably about 25% of the store.   :shock:

Tom's happy place..........   :D :D
Remember, it's all about the music........

Nola Boxers
Sunfire True SW Super Jr (2)
Quicksilver Mid Monos
ARC SP-9
VPI HW-19 Mk IV/SDS/SME IV/Sumiko Blue Pt. Special
EE Minmax DAC/Bluesound Node/Denon 2910
TWL Power Cords/MIT Cables

Offline richidoo

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Re: Interesting stock article about Sonos
« Reply #5 on: August 10, 2018, 06:00:28 PM »
No I didn't know about Amoeba. DARN!

There was one pretty big record store that we kept driving past each day, near The Castro. Do you know that one?

We went out there to visit my middle son who is doing a summer internship at a video game company in San Mateo. SF is such a beautiful city if you can afford it. We especially loved the waterfront and North Beach.

The antitrump hysteria was also omnipresent and quite amusing.  :lol: