New Zealand markets closed
  • NZX 50

    +89.98 (+0.81%)

    +0.0006 (+0.11%)

    +125.60 (+1.82%)
  • OIL

    -0.10 (-0.12%)
  • GOLD

    -3.40 (-0.20%)

Sonos stock tumbles following slash to revenue forecast

Yahoo Finance Live checks out speaker-maker Sonos' stock movements amid cuts to its full-year revenue forecasts.

Video transcript

- My triple play for today is Sonos Speakers, which experienced a bit of a double whammy today. There was some churn in the C-Suite offices with CFO Brittany Bagley stepping down. The company also reported earnings yesterday in which they slashed fiscal year guidance. They blamed supply chain snags and also weakness in demand. Now, the whole idea for Sonos is that if you have one Sonos speaker you can hook it up to other Sonos speakers.

So I guess maybe they were hoping people had more money to spend on other Sonos speakers. I don't own it before. I don't know if I've ever used one before. I'm not a huge fan of the interface. But--

- Yeah, I feel like my parents have tried and every single time they're like, is the Sonos working. I'm like, no. You can't hear it in here but you can hear it outside across the street. But honestly, I kind of think this market's a little saturated too. I mean, we have similar products from Amazon, from Google. On the earnings call they said that they have more inventory than they want. Not to mention that this is a very expensive product. So I'm not surprised that people are pulling back a little bit, especially during these uncertain times.

- Yeah, I was going to say, I mean, I've tried to used these before and I think that utility is really-- if you're just trying to blast a speaker around the pool you really only need one. But the real utility is actually if you have multiple rooms that you're trying to connect there. I think that's really where Sonos shines. But apparently people are deciding they just don't need to buy as many right now.

- Yeah, poor Sonos.