Smart Home Stocks Take a Beating in 2022

Following several years of strong gains, publicly traded companies engaged in the smart home industry fell back to earth hard in 2022, with an average stock price loss of 32% for the year. The poor performance mirrored the overall market conditions during which the Dow Jones Industrials lost 9%, the NASDAQ lost 33%, and the S&P 500 lost 19% for the year.

Of course, nearly all the 55 companies in the Smart Home Stock Index are highly diversified businesses, so any rise or fall in their stock price is not necessarily directly related to the performance of the company’s smart home interests. There are a handful of “pure play” smart home companies on the list – Vivint, ADT, Alarm.com, Resideo and Snap One – and several of those companies performed well.

Vivint Smart Home was the biggest public company stock winner in 2022… by far. The Ogden, Utah-based company saw its stock rise an amazing 21%. Much of that gain came in December after utility giant NRG Energy announced on December 5 it was acquiring Vivint for a total transaction price of $5.2 billion, including $2.8 billion cash as a windfall. Following the announcement, Vivint’s stock skyrocketed 33% in one day.

Not coincidentally, the third-largest stock price gainer last year was another installation company: ADT, which saw its stock price climb 8% for the year. Among the notable actions that helped ADT thrive in the otherwise horrible stock market was the announcement that State Farm Insurance acquired 15% of ADT in September. The company also expanded its partnership with Google, which invested $450 million into ADT back in August 2020.

The second-biggest gainer in terms of stock price in 2022 was Belden, which had a 9% stock price increase. The cable manufacturer continues to be on the comeback trail from a turbulent 2020 when its stock fell 24%. In 2021, Belden’s stock bounced back up 57% gain. The 2022 increase looks like a continuation of its comeback.

The only other stock that showed an increase in 2022 was Honeywell, which was newly added to the Smart Home Stock Index this year. The HVAC giant still has a strong marketshare with smart thermostats among integrators, even though it spun off Resideo as a pure-play smart home company several years ago.

The other aforementioned pure-play stocks, Resideo (down 37%), Alarm.com (down 42%), and Snap One (down 65%), did not fare well in 2022.

Other new companies on the Index this year are:

  • Cisco, makers of enterprise-grade networking gear installed by integrators
  • Fortune Brands, owners of Moen and its smart water system targeted at the custom channel, as well as new owners of Yale and August smart locks. Both those brands were recently acquired from Assa Abloy.
  • SmartRent, makers of smart home solutions installed by authorized integrators for multifamily property managers

Removed from this Index for 2022 was AT&T. The former owners of DirecTV sold that satellite TV division in early 2021.

The biggest stock price drops in 2022 belonged to Summit Wireless Technologies (WiSA) which saw its stock fall 92%. That is following a year in which the stock had risen a whopping 354%. Tuya, Arlo and IAC Interactive also had dramatic drops in their stock prices in 2022.

This image has an empty alt attribute; its file name is C2302-SmartHome-Stock-Chart2-806x1024.jpg

The post Smart Home Stocks Take a Beating in 2022 appeared first on Security Sales & Integration.



from News Archives - Security Sales & Integration https://www.securitysales.com/business/smart-home-stocks-2022/
via IFTTT

Comments

Post a Comment

Popular posts from this blog

Total Tech Summit Puts Call Out for Top Integrators to Apply Now

Image
FRAMINGHAM, Mass. — Total Tech Summit announces that applications are now being accepted to attend this year’s event. Comprised of the  SSI Summit, CE Pro Summit and Commercial Integrator Summit, this year’s event will take place in Las Vegas at the MGM Grand Hotel and Casino, Nov. 13-15. At this all-expense-paid, exclusive event, VIP guests will have the chance to sit in on industry-defining sessions, key boardroom presentations, and be able to meet one-on-one with potential vendors. Total Tech Summit brings together the best in class to share ideas, learn from others, and most importantly, accelerating the next stage of their businesses. It is the only event of its kind that bridges channels and connections by bringing together professional security, commercial AV and residential AV integrators. Another perk of the Total Tech Summit is the VIP Peer-to-Peer groups. These group conversations take place throughout the months leading up to the event and are guided by the editors of t
Read more

Top 10 Security Stories From October 2021: China Ban Gains Steam, Vivint Countersues ADT

October saw its fair share of legal issues and acquisitions. This month, lawsuits involved home security companies, a gunshot detection provider and even a media company. Vivint Smart Home is seeking retribution for the lawsuit ADT filed against it last year that alleged Vivint salespeople go to ADT customers’ homes, get them to sign Vivint contracts and install the company’s alarm systems in their homes under false pretenses. Vivint had requested a motion to have that lawsuit dismissed, but when the judge denied the motion, Vivint launched a countersuit claiming it is in fact ADT that is deceiving and stealing its customers. Gunshot detection provider ShotSpotter filed a lawsuit against media company Vice, alleging it is profiting off of fabricated claims. Vice has been critical about ShotSpotter’s technology in a multitude of articles. Though not a lawsuit, Dahua and Hikvision continue to feel pressure from the U.S. government as it considers a new measure that would make it imp
Read more

Minnesota AG Calls for Cancellation of Home Security Contracts for Alleged Fraud

STEARNS COUNTY, Minn. — Bring Me the News reports that Minnesota’s Attorney General, Keith Ellison, says he’s gotten consumers in Stearns County out of home security contracts after they were misled by a door-to-door salesman. According to the report, Ellison’s office announced that home security companies Skyline Security Management and Safe Home Security have agreed to their cancel contracts with customers in and around Stearns County who purchased their systems from door-to-door salesman Gary Harvey. “Door-to-door salesmen and their employers are in the business of trust-building,” Ellison said in a statement. “They know they need to have your trust to sell you their products, particularly expensive products like security systems that are supposed to keep your home safe. When that trust is betrayed, it’s emotionally and financially painful. I appreciate Skyline and Safe Home taking the right step in canceling these contracts while my office does what we can under the law to hold M
Read more