What Happened?
Shares of audio technology Sonos company (NASDAQ: SONO) fell 4.9% in the afternoon session after reports revealed increased competition emerged from the CES 2026 technology conference.
Major electronics companies LG and Samsung both revealed new audio products aimed directly at Sonos's market. LG debuted its "Sound Suite," a home audio system developed with Dolby, while Samsung unveiled new Wi-Fi-enabled speakers. This new competitive pressure came as investors were already concerned about the company's performance. Reports noted Sonos had previously missed financial targets, with projections suggesting another drop in the upcoming fiscal quarter.
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What Is The Market Telling Us
Sonos’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 11.6% after continued positive momentum as it reported better-than-expected second-quarter 2025 results that beat revenue and profit forecasts.
While revenue declined 13.2% year-over-year to $344.8 million, the figure still topped analyst estimates. The company also posted adjusted earnings per share of $0.19, easily clearing consensus forecasts. The results were highlighted by a significant beat on adjusted EBITDA (a measure of profitability), which came in 45.7% above expectations. Investors were seemingly encouraged by the company's ability to manage costs and outperform on profit despite the drop in sales.
Sonos is down 1.7% since the beginning of the year, and at $17.19 per share, it is trading 10.3% below its 52-week high of $19.16 from December 2025. Investors who bought $1,000 worth of Sonos’s shares 5 years ago would now be looking at an investment worth $709.03.
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