Serve Robotics Inc. is facing a downturn in its stock price today, primarily due to concerns over its financial health and cash burn rate. Despite the company's promising partnership with Uber and Nvidia, which involves deploying 2,000 autonomous delivery robots, Serve is struggling financially. The company reported a significant net loss of $26.1 million for the first three quarters of 2024, with only $50.9 million in cash remaining. This financial strain is exacerbated by the fact that Serve's revenue dropped significantly in the third quarter, following a one-time licensing fee from Magna International in the second quarter. The company's reliance on an at-the-market equity facility to raise $100 million further raises concerns about potential shareholder dilution.
Additionally, Serve Robotics' earnings estimates for 2025 reflect continued losses, with analysts predicting negative earnings per share throughout the year. The company's financial outlook, combined with its current cash burn rate, suggests that Serve may need to secure additional funding or significantly cut costs to sustain its operations. This financial uncertainty is likely contributing to the negative sentiment among investors, leading to the stock's decline.
Serve Robotics Inc. (SERV) is currently trading at $13.50, down 11.53% from its previous close of $15.26. The stock opened at $15.57 and has seen a low of $13.35 today. Despite being early in the trading day, the volume is notably low at 433,551 shares, representing just 5.69% of its average daily volume of 7,625,430.