Sonos Stock Struggles for Direction After Revenue Miss

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Sonos’ earnings fell in line with analysts’ estimates

Sonos Inc (NASDAQ:SONO) stock is experiencing a volatile morning, flip-flopping between strong gains and hefty losses, after the company’s fiscal fourth-quarter report. Sonos reported losses of seven cents per share, which was in line with analyst estimates, alongside a revenue miss. However, Morgan Stanley chimed in with a bull note, raising its price target to $53 from $51. At last glance, SONO was down 1.8% to trade at $32.86. 

On the charts, the stock has been consolidating below pressure at the 140-day moving average since mid-September, with the trendline putting a lid on SONO’s gains after an early November bull gap. The stock is trading at its lowest level since October this morning, though it still sports a 40% year-to-date lead.

The majority of analysts are bullish on Sonos stock, with five of the seven in coverage carrying a “buy” or better rating, and two a “hold.” Plus, the 12-month consensus price targget of $46.43 is a 41.1% premium to current levels. 

Meanwhile, the options pits are bursting with activity after the report. So far, 18,000 calls and 11,000 puts have crossed the tape, which is 10 times what’s typically seen at this point. The most popular is the November 31 put, which expires tomorrow, followed by the December 40 call.