What happened
Shares of Sonos (SONO 2.38%) rose 11.8% in January, according to data provided by S&P Global Market Intelligence, not on any specific news, but continuing a trajectory for the sound specialist that allowed its stock to nearly quintuple from its low point last March.
So what
The growth was brought on by audiophiles finding Sonos premium speaker solutions to be a cut above the competition of mass market speakers from the likes of Amazon.com, Apple, and Google.
Image source: Sonos.
Because more people discovered that the various components Sonos sells work seamlessly together to bring a richer, more full listening experience, it was able to see sales rise 3% across 2020, even though retail stores were closed. Last year marked the 15th consecutive year Sonos grew total households with a Sonos product by 20% or more.
Now what
It's likely the upward trend will continue. The Sonos Move has proved to be a very popular speaker because it allows for wireless Wi-Fi and Bluetooth-enabled use indoors and outside of the home, but it's not exactly portable. The Verge site found new FCC documentation, however, that hints a new portable Move-like device, also with Bluetooth and Wi-Fi capabilities, is in the works, which could lead to a whole new round of sales growth.
Elevating the audio experience has proved to be a profitable endeavor for Sonos, as full-year adjusted profits rose 22% last year, and new products should help make the tech stock's coming year a good year, too.
