What Happened:
Shares of audio technology Sonos company (NASDAQ:SONO) jumped 19.2% in the morning session after the company reported first-quarter results that beat analysts' revenue and EPS estimates. Free cash flow also came in strong. In addition, it plans to announce an undisclosed new product line in a few months, likely building some excitement. Sonos's guidance, however, remained unchanged. Overall, this quarter's results seemed positive, and shareholders should feel optimistic.
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What is the market telling us:
Sonos's shares are quite volatile and over the last year have had 12 moves greater than 5%. But moves this big are very rare even for Sonos and that is indicating to us that this news had a significant impact on the market's perception of the business.
Sonos is up 13.6% since the beginning of the year, but at $18.96 per share it is still trading 13% below its 52-week high of $21.78 from May 2023. Investors who bought $1,000 worth of Sonos's shares 5 years ago would now be looking at an investment worth $1,735.
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