2023 could prove to be a year of repair and recovery for the global economy and the capital markets. This backdrop should prove favorable for disruptive technology companies within the Robotics and Automation space.
Here are 2 ideas to consider within the Robotics and Automation segment:
Mobileye (MBLY) - a leader in autonomous mobility solutions. The company recently revealed a production-ready L4 robotaxi with commercial deployments in Israel and Germany since mid-2022
Knightscope (KSCP) - a maker of Autonomous Security Robots. The company uses a unique combination of self-driving and electric vehicle technologies, robotics, and artificial intelligence to provide humans with fully integrated security solutions including eyes, ears, and a voice on the ground - the K5 Security Robot
It’s impossible to know for certain whether or not the bear market has reached its low, but the evidence at hand suggests that conditions have improved dramatically vis a vis the first three quarters of 2022. Importantly, despite a tight monetary policy environment, 10-year Treasury yields have pulled back below 3.5%, from the October high of 4.3%. This decline in long-term yields has had a very positive effect on the valuations of disruptive tech companies – and by extension, their stock prices.
When looking at a sector like Robotics and Automation, it is important to consider 3 criteria:
Does the technology solve an identifiable problem?
Does the technology operate with a competitive advantage?
Does the technology provide an economic benefit to their customers?