Symbotic Inc. (SYM) experienced a dramatic decline in its stock price on November 27, 2024, closing at $24.00, a steep 35.86% drop from the previous close of $37.41. The stock opened at $25.11 and reached a low of $21.78 during the day, with an extraordinary trading volume of 21,610,179 shares, significantly above its average. The plunge was triggered by the company's announcement of a delay in filing its annual report due to significant accounting errors, including revenue recognition issues and unbillable cost overruns. These errors necessitated a restatement of fiscal year 2024 financial results, reducing system revenue, gross profit, and adjusted EBITDA by an estimated $30 million to $40 million. Symbotic also revised its revenue outlook for the first quarter of fiscal 2025 downward, further unsettling investors.
The negative sentiment was compounded by multiple analyst downgrades, including from DA Davidson and KeyBanc, reflecting concerns over the company's internal controls and financial transparency. Additionally, the announcement of a securities law investigation into potential violations exacerbated the stock's decline. The market's reaction underscores the significant impact of financial misreporting on investor confidence, particularly in a company with a low free float and substantial business ties.