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Analysts Back Serve Robotics’ Scale-Up Even as Losses Draw Scrutiny

The company is pursuing growth through platform deals and a hospital robotics acquisition to build new revenue beyond food delivery.

Overview

  • Wedbush kept an Outperform rating with a $22 price target after meetings with management, pointing to a 99.8% delivery completion rate and first signs of software and data revenue in the fourth quarter.
  • Cantor Fitzgerald maintained an Overweight rating and noted more than 2,000 robots now operate across about 20 U.S. cities, with the Diligent Robotics deal adding roughly 100 hospital units.
  • Serve reported fourth-quarter revenue of $882,000 and a per-share loss of $0.34, topping revenue expectations but underscoring that the business remains unprofitable.
  • A partnership with White Castle will use Serve’s sidewalk robots to deliver orders placed on Uber Eats, which expands the company’s reach on major delivery platforms.
  • Management aims to cut the need for remote human supervisors and boost autonomy to lower costs, while some voices like Jim Cramer urge caution due to the company’s large losses.