2018 Investment Series Post 19

Everyone loves payday. Just like everyone else, once I get that sweet deposit in the bank it starts burning a hole in my pocket. Before much time I am ready to blow it all on a shopping spree. My store of choice is the stock market, and I’m shopping for the best deals on companies. Here is what I dropped my $1,000 on this Friday, September 14th.

Sonos Inc. (SONO)

The nineteenth pick of the Let’s Be Millionaires investment series goes to Sonos Inc.

Sonos is a producer of smart speakers that come integrated with Amazon Alexa. The speakers respond to voice commands, produce very high quality sound, and allow you to stream from over 50 different music streaming services via the Sonos app.

This pick is quite risky due to Sonos being a smaller player in a competitive and hot space. Also, the company just went public within the past 2 months so the market has not had much time to trade the stock and so it will likely be a volatile ride to own it.

I am happy to be adding a consumer electronics stock to the portfolio though because I don’t yet have something that really covers this segment yet.

Check out the Sonos website here.

About The Stock

Sonos Inc. went public Thursday, August 2nd. under the ticker symbol SONO. The IPO (initial public offering) was priced at $15 a share and shares closed up at nearly $20 a share after the first day of trading. Since then the stock has traded down to the $16 range and up into the $21 range. The stock dropped 22% this Tuesday from above $21 per share back into the $16 range because of a week quarterly earnings report. For me, this has created a nice time to buy the stock where it is now trading,  around $16.75.

The company currently has negative earnings and therefor no positive P/E ratio. The current market cap is around 1.7 Billion dollars.

This stock can be categorized as a domestic, small-cap, tech/consumer-discretionary, growth stock.

The Speculation

While the smart speaker space is only going to get more competitive I think that Sonos as a brand has gotten into a growing category early on and established itself as a high-end speaker company. If they can become trendy they will start raking in the dough, and I’d like a cut of that dough.

Hopefully this stock can do what Fitbit and GoPro stock could not: get relevant; stay relevant.

Want to start investing in stocks? Click Here to sign up for Robinhood where trading is free. Signing up through my link will also award you with a free share of stock ranging from $5-$180 in value.

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