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Sonos IPO: There's Still Upside Left

Aug. 03, 2018 6:55 AM ETSonos, Inc. (SONO)7 Comments
Gary Alexander profile picture
Gary Alexander


  • At the very last minute, Sonos slashed the starting price of its IPO to $15 per share.
  • It had originally intended to price its IPO in a range of $17-19, indicating that institutional demand for the offering was lackluster.
  • Shares soared more than 30% to close near $20 on the first day of trading, however, indicating that Sonos left some money on the table.
  • Shares still remain reasonably valued and still retain decent upside.

This article was written by

Gary Alexander profile picture
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in SONO over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (7)

27717033 profile picture
Can someone provide input to the question of how long before options become available on Sonos?
27717033 profile picture
This may answer the option question: " For the past 5 trading days, the closing price of the stock must have a minimum per share price for a majority of trading days. This means that IPO issues cannot have options traded on them until 5 days after the initial public offering date. There must be at least 2,000 shareholders in the company."
cssys profile picture
got in at 23 out a few cents higher made 3.00
Chicken little !
Texasstockman1 profile picture
Agreed. Nice article on one I know little about. This helped me a lot. I got in yesterday early and when it settled down (if you call it settled down :) planning to time the buys through the day to a small position and watch it and the effect on the competitors from that point. Thanks for the info. Good luck all.
12ballou profile picture
Thank you Gary Alexander fot your insights. I missed my entry point at $15.51 and the $16.59. I really thought it would correct again but boy was I wrong. I hate to chase a stock. Perhaps as you said wait for the greenshoe option to take affect it the first Earnings Release. The products are fantastic and they are attempting to be more than hardware company, although an additional risk is only one contract manufacturer.
Good article - thank you. I love my Sonos products and have them in nearly every room. I think their agnostic approach (open to all streaming services, multiple voice capabilities, airplay2 support, etc) will play very favorably for them, as a speaker is a 10-year purchase and nobody wants to be locked into a specific walled garden for that long of a period. Sonos gives its customers choices and flexibility, which I appreciate.
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