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Sonos Surged 33% on its IPO

Written by Monica Savaglia
Posted August 6, 2018 at 8:00PM

People love technology. It surrounds our daily lives. Imagine not being able to pick up your phone in the morning and check the news or your email. For me, it’s become a huge part of my daily routine.

I wake up and lay in bed reading my emails and browsing the news headlines. Doing this allows me to feel like I’m being productive while trying to summon the strength the get out of my bed and start the day.

Technology has come a long way, and it’s not slowing down anytime soon. The innovations happening in the tech industry are astounding. Honestly, it makes me really excited for the future.

Of course, we have the tech that is going to drastically change our lives, and then we have the tech that’s going to make our lives more enjoyable. For example, the way we listen to music or watch a movie.

You probably don’t think too much about the quality of speakers you’re listening to your music on, but it can make a big difference. Speakers can make or break any listening experience. Just imagine listening to your favorite song on a speaker that is broken or muffled.

I consider myself a lover of music, and I’m constantly listening to music everywhere I go. That listening experience is very important to me, so when a speaker isn’t giving the quality I’m expecting, that can be really frustrating. It’s hard to focus on anything but the poor quality of sound.

It’s the same when I’m watching a movie. When I'm with my family, we like to watch movies or shows on Netflix together. Family movie nights are my favorite, and they're even better when there’s surround sound. It’s like going to the movies, but in the comfort of my family home.

Changing Your Listening Experience

Sonos is an American consumer electronics company that develops and manufactures smart speakers.

Its focus is on changing how we connect to speakers. It's so focused, in fact, that the company launched three hardware products since last April: the Playbase, the Sonos One, and the Beam.

In addition to those, it added Apple’s AirPlay 2 and Alexa support, which was a good call by the company. Not incorporating support for Apple’s AirPlay or Amazon’s Alexa would have really hurt sales.

The company is focused on delivering devices that allow for seamless and dynamic sound throughout your home. In a recent interview, the company’s chief product officer, Nick Millington, said:

In the last year, we have definitely focused on increasing our velocity of product development and product releases. I’m really proud of having launched the Playbase, the Sonos One, and now the Beam in a relatively short period of time.

Maintaining an outflow of products on the market is going to be a driving force behind the company’s growth, especially now that it's a publicly traded company.

Sonos IPO'd Last Week

This year has been quite a year for tech companies going public. And for Sonos, this summer was the right time to go public.

First, the IPO market is booming. Second, tech IPOs are seeing amazing first days of trading. And lastly, Sonos has a fleet of quality products. It was a no-brainer for the company.

Sonos products are now in use in 7 million homes. Nick Millington said:

Sonos has earned over the years a reputation for quality of the experience, and that’s what these companies [Amazon, Google, and Apple] want to associate their brands with. Something that works, that people like, that they talk about, that they tweet about… by delivering that great experience, these companies are incentivized to work with us.

The company hasn’t put itself entirely in competition with tech giants like Amazon, Google, and Apple. Instead, Sonos is working to grow the number of homes with its products and to show that the technology and engineering of its products is what sets the company apart from competitors.

It's creating products that it wants to last. It’s focused on longevity of a product over a new feature. Speakers are expensive, so why replace your speakers within a few years just to have a newer feature? Sonos’s first product, the ZP100, came out in 2005, and it can still be grouped with modern Sonos speakers.

Sonos (NASDAQ: SONO) made its public debut last Thursday, August 2nd. The company decided to price its shares at $15, below the expected range of $17 to $19.

It closed its first day of trading out at $19.91 — a 32.7% increase in one day! It was still surging on Friday, closing out at $20.95.

This is just another example of the state of the IPO market this year. We could very well see the next big tech giant appear in this year's IPO market.

I've been watching a lot of tech companies emerge onto the market that are surging high within the first year of trading publicly. Just imagine knowing about a company before it starts to take off to become the next Amazon or Apple. Now you can have access to that type of information!

Click here to read more. You'll tap into the knowledge and resources to learn about the companies on the path to being the next trillion-dollar breakout.

Until next time,

Monica Savaglia

Monica Savaglia

Monica Savaglia is Wealth Daily’s IPO specialist. With passion and knowledge, she wants to open up the world of IPOs and their long-term potential to everyday investors. She does this through her newsletter IPO Authority, a one-stop resource for everything IPO. She also contributes regularly to the Wealth Daily e-letter. To learn more about Monica, click here.


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