By using this site, you agree to the Privacy Policy and Terms of Use.
Accept

News Junction

Notification Show More
Font ResizerAa
  • Home
  • World News
    World NewsShow More
    Biden’s cancer diagnosis renews transparency concerns; Trump claims coverup | Health News
    Biden’s cancer diagnosis renews transparency concerns; Trump claims coverup | Health News
    May 20, 2025
    Trump reveals difficult relationship with Zelensky — RT World News
    Trump reveals difficult relationship with Zelensky — RT World News
    May 20, 2025
    Stock market news today: live updates
    Stock market news today: live updates
    May 20, 2025
    Canada, U.K., France warn Israel of ‘concrete action’ over military expansion – National
    Canada, U.K., France warn Israel of ‘concrete action’ over military expansion – National
    May 20, 2025
    My first thought when I heard Joe Biden’s news
    My first thought when I heard Joe Biden’s news
    May 19, 2025
  • Business
    BusinessShow More
    Ukraine blows up bridges to consolidate its positions in Russia
    Ukraine blows up bridges to consolidate its positions in Russia
    August 18, 2024
    Commentary: AI phones from Google and Apple will erode trust in everything
    Commentary: AI phones from Google and Apple will erode trust in everything
    August 18, 2024
    The most famous Indian Dishes – Insights Success
    The most famous Indian Dishes – Insights Success
    August 18, 2024
    Life on the road as a female long rides cyclist
    Life on the road as a female long rides cyclist
    August 18, 2024
    UK inflation rises to 2.2%
    UK inflation rises to 2.2%
    August 18, 2024
  • Cryptocurrency
    CryptocurrencyShow More
    Binance wants arbitration for all members of securities class suit
    Binance wants arbitration for all members of securities class suit
    May 20, 2025
    US Senate moves forward with GENIUS stablecoin bill
    US Senate moves forward with GENIUS stablecoin bill
    May 20, 2025
    Circle reportedly weighing sale to Coinbase or Ripple despite IPO plans
    Circle reportedly weighing sale to Coinbase or Ripple despite IPO plans
    May 20, 2025
    Lido DAO price revisits key support level: what next for LDO?
    Lido DAO price revisits key support level: what next for LDO?
    May 20, 2025
    Ripple Labs Deploys XRP Ledger to Boost Financial Inclusion and Income for Smallholder Agriculture in Colombia
    Ripple Labs Deploys XRP Ledger to Boost Financial Inclusion and Income for Smallholder Agriculture in Colombia
    May 20, 2025
  • Technology
    TechnologyShow More
    How to Improve Your Spotify Recommendations
    How to Improve Your Spotify Recommendations
    August 18, 2024
    X says it’s closing operations in Brazil
    X says it’s closing operations in Brazil
    August 18, 2024
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    August 18, 2024
    Scientists Want to See Videos of Your Cat for a New Study
    Scientists Want to See Videos of Your Cat for a New Study
    August 18, 2024
    OpenAI’s new voice mode let me talk with my phone, not to it
    OpenAI’s new voice mode let me talk with my phone, not to it
    August 18, 2024
  • Entertainment
  • Sports News
  • People
  • Trend
Reading: Nvidia’s Ownership Stake News Sent Serve Robotics Stock Soaring 233%. Should You Also Buy This AI Stock?
Share
Font ResizerAa

News Junction

  • World News
  • Business
  • Technology
  • Cryptocurrency
  • Trend
  • Entertainment
Search
  • Recent Headlines in Entertainment, World News, and Cryptocurrency – NewsJunction
  • World News
  • Business
  • Cryptocurrency
  • Technology
  • Entertainment
  • Sports News
  • People
  • Trend
Have an existing account? Sign In
Follow US
News Junction > Blog > Business > Nvidia’s Ownership Stake News Sent Serve Robotics Stock Soaring 233%. Should You Also Buy This AI Stock?
Nvidia’s Ownership Stake News Sent Serve Robotics Stock Soaring 233%. Should You Also Buy This AI Stock?
Business

Nvidia’s Ownership Stake News Sent Serve Robotics Stock Soaring 233%. Should You Also Buy This AI Stock?

Published July 23, 2024
Share
8 Min Read
SHARE

Contents
Serve Robotics’ backgroundWhat does Serve Robotics do?Serve Robotics’ financialsServe Robotics is a risky stockNvidia stock is a better way to invest in roboticsShould you invest $1,000 in Serve Robotics right now?

Shares of Serve Robotics (NASDAQ: SERV), an autonomous sidewalk delivery company, soared 187% on Friday after artificial intelligence (AI) chip leader Nvidia disclosed via a filing with the Securities and Exchange Commission (SEC) that it owns a 10% stake in the relatively new public company. More specifically, Nvidia owns 3,727,033 shares of Serve’s 37.1 million shares outstanding.

Serve Robotics stock continued its rise on Monday, with its 16.2% gain bringing its two-market-day surge to 233%.

Serve Robotics held its initial public offering (IPO) on the Nasdaq on April 18, 2024, at $4 per share. Shares closed on Monday at $8.77, up from $2.63 on Thursday before the Nvidia news broke. Prior to its Nasdaq listing, Serve’s stock had traded on the OTCQB, the over-the-counter market known as the “Venture Market.”

Should you follow Nvidia’s lead and buy Serve Robotics stock?

A Serve Robotics' delivery robot on a sidewalk in front of a commercial building.

Image source: Serve Robotics.

Serve Robotics’ background

Serve Robotics — headquartered in California’s Silicon Valley — was originally part of food-delivery company Postmates. In 2021, Serve was spun off from ride-hailing specialist Uber Technologies following Uber’s 2020 acquisition of Postmates.

What does Serve Robotics do?

Serve Robotics develops and operates AI-powered, low-emissions sidewalk delivery robots that serve people in public spaces. The company currently focuses on last-mile food delivery in cities for enterprise partners. Serve’s CEO has said the company eventually plans to expand into grocery, pharmacy, cannabis, and parcel delivery.

In 2020, Serve, which was then a team working for Postmates, launched its sidewalk delivery robots in Los Angeles during the COVID-19 pandemic shutdowns. By the end of that year, its robots had completed over 10,000 deliveries.

After spinning off from Uber in 2021, Serve Robotics formed a partnership with Uber. In early 2022, it began deliveries for Uber on a small scale, and in June of the same year, the two companies signed an agreement for Serve to deploy up to 2,000 of its robots on the Uber Eats platform across multiple U.S. markets.

Serve’s current fleet consists of over 100 robots, it said in a July SEC filing. The company has platform-level integrations with the Uber Eats division of Uber and convenience store chain 7-Eleven. It’s also conducted pilots for Walmart, a major pizza quick-service restaurant, and a major coffee shop chain, according to the filing.

In late April, Serve expanded its existing agreement with Magna International, a leading automotive supplier. Under the new agreement, Magna became the exclusive contract manufacturer of Serve’s delivery robots. In February, Serve had granted Magna a non-exclusive license to its technologies and expertise.

Serve Robotics’ financials

As of Monday’s market close, Serve Robotics’ market cap was $325 million, which makes its stock a small-cap stock.

In the first quarter of 2024, the company’s revenue was $946,711, up from $40,252 in the year-ago period. This big increase was due primarily to about $850,000 in revenue generated from the company’s software services contract with Magna. It also had slightly more revenue from deliveries and branding.

Its Q1 2024 net loss was $9 million, or $0.37 per share, compared with a net loss of $5.1 million, or $0.77 per share, in the year-ago quarter. (The loss per share decreased because of the increase in the number of shares.)

For the full year 2023, the company generated revenue of $207,545 and had a net loss of $24.8 million.

Liquidity is often a huge concern for early-stage tech companies that are not profitable. Indeed, Serve Robotics used cash of $4.1 million running its operations in the first quarter, and ended the period with just $430,000 in cash and cash equivalents. The company’s coffers got a much-needed injection of cash from its April IPO, which netted it cash of $35.7 million. That brought its cash and cash equivalent position up to about $36.1 million.

How long will that $36.1 million in cash last? It’s not possible to estimate because the company said it planned to use some of the IPO cash to scale up its operations. So, investors can probably expect its cash-burn rate to increase. In other words, while it burned through cash of $4.1 million running its operations in Q1 (which equates to an annual operating cash-burn run rate of just over $16 million), this number will likely be higher in Q2 and beyond.

Serve Robotics is a risky stock

Serve Robotics stock is too risky for most investors. It’s only suitable for folks comfortable with buying stock in start-ups that are likely to be unprofitable for a good number of years. Another notable risk factor is the company’s high customer concentration. In Q1 2024, one customer accounted for 90% of Serve’s revenue, it said in an SEC filing. It’s safe to assume this customer is Uber.

Nvidia stock is a better way to invest in robotics

More advanced robots are coming, thanks in large part to recent advances in AI. A solid way to invest in robotics is to buy Nvidia stock. The company’s graphics processing units (GPUs) and related technology are being used for training and deploying autonomous machines of various types, including robots.

Indeed, it’s safe to assume that Serve Robotics is one such company using Nvidia’s GPUs. In a July SEC filing, Serve said, “Nvidia is an early technology collaborator of Serve. We have worked with Nvidia’s robotics and engineering teams for over five years.”

Should you invest $1,000 in Serve Robotics right now?

Before you buy stock in Serve Robotics, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Serve Robotics wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $722,626!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of July 22, 2024

Beth McKenna has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia, Uber Technologies, and Walmart. The Motley Fool recommends Magna International. The Motley Fool has a disclosure policy.

Nvidia’s Ownership Stake News Sent Serve Robotics Stock Soaring 233%. Should You Also Buy This AI Stock? was originally published by The Motley Fool

#Nvidias #Ownership #Stake #News #Serve #Robotics #Stock #Soaring #Buy #Stock

TAGGED:buyNewsNVIDIANvidiasOwnershiproboticsservesoaringstakeStockUber Technologies
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article Bangladesh, protests are no longer about the quota system | Opinions Bangladesh, protests are no longer about the quota system | Opinions
Next Article Police investigating alleged ‘gang rape’ of Australian woman, 25, in Paris just days ahead of Olympics | World News Police investigating alleged ‘gang rape’ of Australian woman, 25, in Paris just days ahead of Olympics | World News
- Advertisement -

Latest Post

Binance wants arbitration for all members of securities class suit
Binance wants arbitration for all members of securities class suit
Cryptocurrency
Biden’s cancer diagnosis renews transparency concerns; Trump claims coverup | Health News
Biden’s cancer diagnosis renews transparency concerns; Trump claims coverup | Health News
World News
US Senate moves forward with GENIUS stablecoin bill
US Senate moves forward with GENIUS stablecoin bill
Cryptocurrency
Trump reveals difficult relationship with Zelensky — RT World News
Trump reveals difficult relationship with Zelensky — RT World News
World News
Circle reportedly weighing sale to Coinbase or Ripple despite IPO plans
Circle reportedly weighing sale to Coinbase or Ripple despite IPO plans
Cryptocurrency
Stock market news today: live updates
Stock market news today: live updates
World News
- Advertisement -

You Might Also Like

Mick Jagger and Keith Richards immortalised in bronze in their home town | Ents & Arts News
Entertainment

Mick Jagger and Keith Richards immortalised in bronze in their home town | Ents & Arts News

August 10, 2023
Kenya’s debt up record Sh1.56trn
Business

Kenya’s debt up record Sh1.56trn

August 16, 2023
Imran Khan’s sister says Nawaz Sharif’s claim to election victory is an ‘insult to Pakistanis’ | World News
World News

Imran Khan’s sister says Nawaz Sharif’s claim to election victory is an ‘insult to Pakistanis’ | World News

February 11, 2024
Scientists use Crispr gene editing to treat hereditary disorder
Business

Scientists use Crispr gene editing to treat hereditary disorder

February 1, 2024

About Us

NEWS JUNCTION (NewsJunction.xyz) Your trusted destination for global news. Stay informed with our timely and accurate reporting on diverse topics, including politics, technology, science, entertainment, sports, and more. Count on us for unbiased and reliable updates at your fingertips.

Quick Link

  • About
  • Disclaimer
  • Privacy Policy
  • Terms of Use
  • Contact

Top Categories

  • World News
  • Business
  • Technology
  • Entertainment
  • Cryptocurrency
  • Sports News
  • Trend
  • People

Subscribe

Subscribe to our newsletter to get our newest articles instantly!

    © 2023 News Junction.
    • Blog
    • Advertise
    • Contact
    Welcome Back!

    Sign in to your account

    Username or Email Address
    Password

    Lost your password?