iRobot (IRBT) is a tale of bureaucratic red tape preventing the firm from finding a white knight. In 2022, Amazon (AMZN) proposed to buy the robotics vacuum supplier. However, the European Union blocked the $1.7 billion buyout offer.
Fast-forward to IRBT stock in the last week. After the White House said that the government needed to accelerate developments in robotics, IRBT stock surged from the $1.31 level to over $5.50. On Sunday, December 14, the firm filed for bankruptcy protection. It would go private after Picea Robotics, its primary manufacturer, agreed to acquire it.
In the real estate sector, Zillow Group (ZG) plunged after Google (GOOGL) reportedly tested sales listings. ZG stock fell to as low as $63.15 in intraday trade on Monday. Google’s search would easily erode Zillow Group’s site offering. Google search could show sales listings in limited markets. It could use artificial intelligence to power the exclusive listings. That would hurt Zillow’s profit margins.
CoStar (CSGP) closed down by 6.57% on Monday for the same reason. Its ownership of Homes.com would lose value if Google search offered home sales listings in its results.
Investors should continue to exercise caution in holding homebuilder stocks. Interest rates are falling yet again. But home prices are still too high. That would hurt D.R. Horton (DHI) and Lennar’s (LEN) prospects.
