iRobot (IRBT) is facing questions of competitive pressure after Spruce Point released a bearish research report on the company, citing among other things, the vulnerability of U.S. market share. The piece is informative and well put together and I'd encourage readers to give it a look whether you're bullish or bearish as it brings up and discusses important points of which all investors should be aware. I think the overall growth of the broader consumer robotics market and the value of the Roomba brand in the robotic vacuum cleaner ("RVC") market provide reasons for optimism. While shares may still be a bit frothy, I think the long-term bull thesis is still intact.
Competition concerns combined with the tech sell-off of the recent week have knocked shares down nearly 20% off 52-week highs reached a couple of weeks ago, so I thought now might be a good time to evaluate IRBT shares and update my previous article from February that was part of my "Buy on the Drop" series.
