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iRobot: Bad Odds On The Amazon Deal Make This One A Sell

Mar. 27, 2023 3:03 PM ETiRobot Corporation (IRBT)AMZN18 Comments
And Value for All profile picture
And Value for All


  • The wide discount to the agreed sale price to Amazon indicates that Wall Street is very skeptical of the actual consummation of the deal.
  • I believe negative earnings surprises and recession in 2023 will put IRBT in turnaround mode. I like the firm’s products, but at $40, shares seem wildly overvalued and kept afloat by M&A.
  • Avoid this arbitrage opportunity as the risk/reward does not seem favorable at all.
Amazon To Buy iRobot, Maker Of Popular Roomba Vacuum

Justin Sullivan


Almost eight months have passed since Amazon (AMZN) announced its acquisition of iRobot Corporation (NASDAQ:IRBT) for $1.7B in cash, valuing IRBT at $61/share. Although the market initially reacted positively, with shares briefly touching $60, the spread quickly widened due to

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And Value for All profile picture
Finance Director. I work for a large-cap listed European company (consumer goods). Passionate about everything concerning investing and finance, I manage my portfolio. The current portfolio allocation strategy (as of 2023) ranges about 50% ETF, 20% High Yield (including preferred shares), 20% DGI, and a few (10%) high-conviction growth names.At the ongoing assets progression rate, I am hopefully turning into full-time investing by the end of the decade. In the meantime, I will continue contributing to the site as a hobby and for self-development. I am a former semi-pro chess player, now at high risk of becoming a ski bum (that's why I do not write much during winter...).

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within 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.

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