Serve Robotics is a relatively young company that has recorded little in the way of revenue.
The business could scale rapidly, and the stock could be a worthwhile buy for risk-tolerant investors.
Serve Robotics (NASDAQ: SERV) is an early leader in last-mile-delivery robotics technologies. The company has a close business partnership and investment relationship with Uber Technologies, and it could be poised for rapid sales growth as deployment and utilization of its delivery bots accelerate.
On the other hand, the company's stock has been under pressure lately. The company's share price has fallen by almost 13% across 2026's trading. Meanwhile, the stock is down roughly 49% from its 52-week high. Should investors pounce on this potential investment opportunity on the heels of recent pullbacks?
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Serve Robotics is a company that is still in a very early expansion stage. The business posted sales of approximately $2.7 million last year -- a relatively small level of revenue for a company that sports a market capitalization of roughly $688 million as of this writing. On the other hand, the company's current market cap reflects expectations that sales will begin scaling rapidly in the not-too-distant future.
Serve Robotics is a speculative, high-risk bet. Along those lines, the stock probably won't be a good fit for a substantial subset of investors. On the other hand, the company could be a worthwhile buy for investors who have a high tolerance for risk and a desire to benefit from automation and artificial intelligence (AI) trends.
Serve Robotics is guiding for sales this year to come in at roughly $26 million -- a level that still looks relatively small in the context of its valuation. Conversely, the company's guidance supports expectations for a rapid revenue ramp -- and there are good reasons to think the growth story is still in early innings.
If you're willing to embrace relatively high levels of risk and uncertainty, Serve Robotics is a stock that could deliver big returns over the long term.
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Keith Noonan has positions in Serve Robotics. The Motley Fool has positions in and recommends Serve Robotics and Uber Technologies. The Motley Fool has a disclosure policy.