The decline added to steep losses since the stock touched $100 in early September, but iRobot is still a big winner over the past five- and 10-year periods.
The October drop came after the company posted solid third-quarter operating results. Revenue jumped 26% and profitability improved to 50% of sales from 48% a year ago as the company shipped 29% more of its robotic vacuum cleaners. iRobot executives also raised their full-year outlook on both the top and bottom lines.
However, investors are growing concerned that the good times can't last much longer, given that iRobot is facing sharper challenges by rivals seeking a piece of its attractive market. Competition should, the theory goes, chip away at the company's dominant 64% market share over time.
iRobot is doing what it can to prevent that from happening by introducing innovations that push the industry further. Yet even if the company loses ground to rivals, it could still see solid growth in the years ahead as the robotic-vacuum niche expands from its current share of just 10% of the high-end vacuum market.