Arbe Robotics: Decent Radar Credentials, But Not In Vogue

2025-03-31 17:40:49 ET

Summary

• Arbe Robotics, a specialist in 4D imaging radar technology, has experienced a volatile Q1-25, but has ended up faring a lot worse than other micro-caps.
• If autonomous vehicles are to become more mainstream in the retail market, ARBE has the appropriate credentials to benefit from this wave.
• ARBE's annual revenue has been declining by around 50% for two years on the trot, but this is poised to improve as the company gets closer to commercial production of chipsets.
• However, ARBE has an infamous track record of delays and revisions, which creates a trust deficit.
• ARBE may appeal as a mean-reversion bet for those fishing in the micro-cap space, but we wouldn't suggest it at this juncture as it is witnessing significant downward momentum pressure.

A Quarter Of Peaks and Valleys

The first quarter of 2025 hasn’t been a very fruitful period for global stocks as they’ve lost over 1% YTD; yet, we doubt too many people will get hung up about this decline, as it is still quite modest compared to the performance of US micro-caps that are down by over -14%....

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