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Reallyconfused
Virtuoso
Virtuoso

I'm sure I will not get a honest answer, but here it goes.

 

Elsewhere on this forum I just read that Arlo stock is down by 80%. Is this why Netgear and Arlo have gone their separate ways? Does Netgear know something we don't know?

 

Where will I stand with $1500 worth of hardware if the worst happens? {stupid question I guess}

We have already seen a drop in playback quality as it is not 1080p due to major compression to save on cloud server space {?} And will that bring on some sort of class action litigation? Will litigation further drive stock down and exasperate the situation?

 

I'm concerned now. 

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silverado44
Virtuoso
Virtuoso

Don't worry about it as a lot of company's that do a separation (spin off) there stocks drop hard. Consider it a new company and stock investors don't buy until they see where its going. There stock was as low as 25.04 on the split and now its back up to 33.70, give it time investors will buy once they feel comfortable about the basically new company. 

Think of it this way would you buy stock in a new company or are you going to sit back and wait to see where its going?

michaelkenward
Sensei Sensei
Sensei

There is a long history of prices dropping at float time. Just ask people who bought into Aston Martin.

 

The reason given for the Arlo/Netgear split was that routers and network equipment are mature businesses with limited growth projects. Cameras and other Internet of Things (IoT) devices are "hot", with Arlo being one of the leading brands. Netgear was dragging down the share prices in the Netgear/Arlo joint venture.  On its own Arlo shares would lose that deadweight.

 

Then there is the cost of R&D. Growing businesses have different funding needs. Investors are prepared for higher costs if they see the promise of lots of future growth.

 

Arlo's post-float share price also owes a lot to the state of the market. The IPO happened when businesses got funny prices. Since then, tech-business floats have been less silly. Indeed, several have not happened because the market has come down to earth and isn't prepared to pay through the nose. Think WeWork.

 

 


Just another user
Arlo hardware: Q Plus, Pro 2 (X2), Pro 3 (X3), Pro 3 Floodlight, Security Light (X2), Ultra (X2), Doorbell, Chime
Reallyconfused
Virtuoso
Virtuoso

Yes, all that does make sense. Lets hope the new blood can allow some of these niggling issues to be sorted

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