Serve Robotics (SERV 8.26%) is poised to publish its fourth-quarter results and host an investor conference call after the market closes on March 11. In December, the last-mile-delivery robotics company published a press release announcing that it had achieved its goal of deploying more than 2,000 delivery robots in the year -- but that hasn't translated to big valuation gains.
As of this writing, Serve stock is down roughly 60% from the high it reached last year. Should investors be buying the stock ahead of its upcoming earnings report?
Image source: Getty Images.
With its last quarterly update, Serve said it anticipated posting roughly $2.5 million in sales for 2025. The company also said it expected revenue for this year to come in roughly 10 times higher than last year's level. With the company currently valued at $744 million, that means that the business is trading at roughly 30 times management's rough estimate for 2026 revenue. That's an enormously growth-dependent valuation, and prices in future success at a level that suggests the stock is probably only a good fit for investors who have very high risk tolerance.
NASDAQ: SERV
Key Data Points
On the other hand, I think Serve stock has the potential to be a winner for long-term investors. The company is admittedly still in the very early stages of its commercialization ramp-up, and scaling operations will require high levels of spending, but the company's tech stack and close partnership with Uber Technologies suggest it's in good position to capitalize on a massive market opportunity.
