Raspberry PI Holdings plc ( (GB:RPI) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.
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Raspberry Pi Holdings plc shares came under pressure as analysts flagged concerns over shrinking profit margins, negative free cash flow and weak technical trading signals. Investors are also wary that the company’s outlook now heavily depends on how the tight and increasingly expensive LPDDR4 memory market evolves, and how customers respond to upcoming price increases in the second half of the year.
Despite these headwinds, the company still expects a materially higher adjusted EBITDA next year, helped by full‑year product shipments, stronger margins in the second half and a reduction in supplier payables. Management points to solid demand from OEMs and resellers and a promising pipeline of new products, even as it is forced to qualify new suppliers, introduce lower‑memory variants and pass on higher memory costs through price hikes.
More about Raspberry PI Holdings plc
YTD Price Performance: -3.40%
Average Trading Volume: 334,914
Technical Sentiment Signal: Sell
Current Market Cap: £565.6M
For further insights into RPI stock on TipRanks’ Stock Analysis page.
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