The market is full bull with retail investor participation through the roof. One place to diversify that keeps you squarely in technology is in new hi-tech solutions for audio technology. Because audio in some form accompanies everything we do with technology, you see some of the best fundamental trends for leading companies in this space.
Everything that expands our reach into augmenting technologically intermediated experiences must have an audio component.
With that mind, we have put together a short list of some of the most interesting names in the space, including: Dolby Laboratories, Inc. (NYSE:DLB), Logitech International SA (NASDAQ:LOGI), Zevotek Inc. (OTCMKTS:ZVTK), and Sonos Inc (NASDAQ:SONO),
Dolby Laboratories, Inc. (NYSE:DLB) bills itself as a company that creates audio and imaging technologies that transform entertainment and communications at the cinema, at home, at work, and on mobile devices.
The company develops and licenses its audio technologies, such as AAC & HE-AAC, a digital audio codec solution used for a range of media applications.; AVC, a digital video codec with high bandwidth efficiency used in media devices; Dolby AC-4, an audio coding technology that delivers new audio experiences to a range of playback devices; and Dolby Atmos technology for cinema and a range of media devices.
Its audio technologies also include Dolby Digital, a digital audio coding technology that provides multichannel sound to applications; Dolby Digital Plus, a digital audio coding technology that offers audio transmission for a range of media applications and devices; Dolby TrueHD, a digital audio coding technology providing encoding for media application; Dolby Vision, an imaging technology for cinema and media devices; Dolby Voice, an audio conferencing technology; and HEVC, a digital video codec with high bandwidth efficiency to support for media devices.
Dolby Laboratories, Inc. (NYSE:DLB) just announced Dolby.io, an API platform that further broadens the opportunities to create in Dolby for the enterprise and application development space.
Dolby.io will enable businesses, developers, and content creators to enhance every interaction and every piece of content in order to deliver spectacular communications, collaboration, and audiovisual experiences in their apps and services. Since its founding, Dolby has been on a mission to empower creativity and self-expression, which is driven by a belief that people are moved and compelled by immersive experiences.
It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things. Shares of the stock have powered higher over the past month, rallying roughly 4% in that time on strong overall action.
Dolby Laboratories, Inc. (NYSE:DLB) pulled in sales of $351.8M in its last reported quarterly financials, representing top line growth of 4%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($909.3M against $307.3M).
Logitech International SA (NASDAQ:LOGI) is another top player in the sound space. The company offers pointing devices, such as wireless mouse and trackball; corded and cordless keyboards, living room keyboards, and keyboard-and-mouse combinations; PC webcams; and keyboards for tablets and smartphones, as well as other accessories for mobile devices.
It also provides keyboards, mice, headsets, and simulation products, such as steering wheels and flight sticks for gamers; video conferencing products, and controllers for video conferencing room solutions; portable wireless Bluetooth and Wi-Fi speakers, PC speakers, PC headsets, in-ear headphones, and wireless audio wearables; home entertainment controllers for smart home devices comprising lighting, thermostats and door locks, and home security cameras.
Logitech International SA (NASDAQ:LOGI) just announced that its Logitech G, a brand of Logitech (NASDAQ: LOGI), and Herman Miller (NASDAQ: MLHR) took a first step into the world of seating ergonomics for gamers, streamers, and esports athletes today when they unveiled a series of high performance gaming furniture and accessories, including the Embody Gaming Chair, the industry’s first truly ergonomic chair.
Together, the two companies spent nearly two years studying esport pros and players around the globe to understand their needs. “Prior to the in-depth research we did, we knew many gamers loved our current offering as we are constantly rated highly in almost every gamer product review,” said Tim Straker, Chief Marketing Officer for Herman Miller. “The main feedback we received was they wanted more variety.”
And the stock has been acting well over recent days, up something like 4% in that time.
Logitech International SA (NASDAQ:LOGI) managed to rope in revenues totaling $763M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 18.1%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($766.9M against $828.7M, respectively).
Zevotek Inc. (OTCMKTS:ZVTK) is the most speculative name on the list. The company is actually an incubator that has organized itself to provide management and resource expertise to new and promising startups. According to company materials, ZVTK plans on investing in startups and providing funding, development, suppliers & vendor management, software development, marketing, management and research & development to its potential clients. According to materials from the company, ZVTK will catalyze the growth of Market Disruptive & Game Changing Businesses in the IOT, Business Automation, Data Processing, Business Analytics & Connected Healthcare sectors.
The company is headed by Jeffrey Carlson, CEO. With education from Northeastern University, Mr. Carlson bring over 16 years of experience in financial markets, corporate finance, securities trading, investor relations, and executive management. Mr. Carlson held executive positions in Turn Around Holdings & Ionicbulb.com. as well as Global Sales Management in JP Morgan Chase & Alorica.
Zevotek Inc. (OTCMKTS:ZVTK) recently locked down an acquisition of Blankki Products targeting a $36 billion market opportunity. Effective May 7th, 2019, Zevotek acquired all of the assets of Blankki Products, Inc., for 7,000,000 restricted common shares.
According to information for the Blankki site, “BLANKKI Products was founded in 2017 by a team of Artist & Music Enthusiasts. The goal was to bring to market quality Earphones, Headphones and Accessories at prices that would appeal to the masses. Having grown tired of the prohibitive cost of quality devices, our CEO sought to find the best component manufacturers. That task continues with every new iteration of our products and with every new device we bring to market.”
Zevotek Inc. (OTCMKTS:ZVTK) is pre-revenue, but one sees a light at the end of the tunnel at this point given its acquisition and mobilization of the Blankki asset. This is a large and growing space, and the company is cheap as dirt right now, with a market cap at $750,000. If it is suddenly about to be revealed as a commercial-stage player with teeth in the audio boom, then we believe that number could conceivably rocket higher under the right conditions.
Sonos Inc (NASDAQ:SONO) is perhaps the real leader in the space. The company designs, develops, manufactures, and sells multi-room audio products primarily for use in private residences in the United States and internationally. It offers wireless speakers, home theater speakers, and components. The company offers its products through third-party retail stores and e-commerce retailers, as well as through its sonos.com Website.
Sonos has a sales multiple is higher than that of Fitbit (FIT) and GoPro (GPRO) but lower than consumer electronics companies that have posted more consistent growth like Logitech (LOGI) and Garmin (GRMN).
Sonos Inc (NASDAQ:SONO) just announced that, after market close on Wednesday, August 5, 2020, the company will report financial results for the third quarter ended June 27, 2020 in a letter to shareholders. The company will host a conference call and Q&A to discuss the results on the same day at 5:00 p.m. Eastern Time.
Even in light of this news, SONO has had a rough past week of trading action, with shares sinking something like -6% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way.
Sonos Inc (NASDAQ:SONO) managed to rope in revenues totaling $175.1M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -16.7%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($283.4M against $213.2M).