10 Worst Artificial Intelligence (AI) Stocks To Buy According to Financial Media

2. iRobot Corp. (NASDAQ:IRBT)

Number of Hedge Fund Holders: 17

iRobot Corp. (NASDAQ:IRBT) is a technology company that designs and builds consumer robots, most notably a range of autonomous home vacuum cleaners (Roomba), floor moppers (Braava), and other autonomous cleaning devices. With more than 30 years of AI and advanced robotics experience, it uses AI to make its robots more intelligent and efficient, providing a better user experience.

In Q2 2024, the revenue declined 36% in the US, 35% in Japan, and 22% in EMEA, and D2C revenue represented 23% of total revenue. Despite challenges in this quarter, including a year-over-year revenue decline of 29.68% to $166.36 million, the company is improving its financial position.

Under new CEO Gary Cohen, the company has implemented a restructuring plan to reduce operating expenses and improve product margins. Workforce reductions and more efficient marketing strategies contributed to a 28% year-over-year decrease in operating expenses for Q2.

iRobot Corp. (NASDAQ:IRBT) announced the launch of the Roomba Combo 10 Max, its most advanced cleaning robot yet, in mid-July. This 2-in-1 robot vacuum and mop features a multi-function AutoWash Dock and is part of the company’s strategy to enhance its product lineup.

It also announced the creation of iRobot Labs, its innovation center. This global initiative aims to use internal talent and partnerships to reduce time to market and maintain technological leadership, with a commitment to reclaiming its position as the global innovation leader in consumer robots. The announcement also emphasized the growth potential in the functional cleaning devices market, particularly in Europe.

With upcoming product launches in 2025, the company is well-positioned to regain its leadership in the consumer electronics market, making it an attractive stock for long-term investors.