Symbotic (SYM) Hit Hard by 21% by ‘Sell’ Reco by Goldman

SYM +6.18% WMT +1.19%

We recently published 10 Stocks Deep in the Red. Symbotic Inc. (NASDAQ:SYM) is one of the worst performers on Tuesday.

Symbotic fell by 21.51 percent on Tuesday to close at $66.95 apiece as investors took path from an investment firm’s bearish rating and price target for its stock.

In a market note on the same day, Goldman Sachs issued a “sell” recommendation on shares of Symbotic Inc. (NASDAQ:SYM), alongside a new price target of $47. The figure marked a 30 percent downside potential from its latest closing price.

According to Goldman, the revision was based on its concerns for Symbotic Inc.’s (NASDAQ:SYM) customer base and cash flow projects.

Goldman said that while Symbotic Inc.’s (NASDAQ:SYM) technology was well received by retailing giant Walmart, with the latter securing systems for all 42 of its regional distribution centers, its number of independent customers has become limited in the past few years.

Additionally, the downgrade was sparked by the company’s relationship with GreenBox, with more than half of Symbotic Inc.’s (NASDAQ:SYM) $22.5 billion backlog coming from the former.

Symbotic owns 35 percent of GreenBox, while the remaining 65 percent is held by SoftBank.

While we acknowledge the potential of SYM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.