Sonos investors are going to like the sound of this.
Shares of the connected-speaker company are taking off in midday trading today, a few hours after they made their debut on the Nasdaq under the SONO ticker symbol. After a sluggish start, the stock price hit a high of $18.95. That’s almost 20% higher than its opening price of $16.
Hardware is a tough business these days (even Apple is looking elsewhere for most of its growth), so Sonos’s super-buzzy IPO is being closely watched by analysts and investors eager to see if the company has what it takes to grow. Founded in 2002, it’s not exactly a new company, but it benefits from a loyal customer base and an established distribution network powered by retailers like Best Buy.
The bigger question is whether Sonos can compete long-term with the likes of Amazon, Google, and Apple—all of which are racing to equip every room in your house with their own smart devices.
If first impressions count for anything, the company is off to a good start.