What Happened?
Shares of audio technology Sonos company (NASDAQ: SONO) fell 3.1% in the morning session after the company's ongoing patent infringement appeal against Google saw oral arguments presented at the Federal Circuit. The case revolves around a 2020 lawsuit where Sonos accused Google of infringing on its wireless speaker patents.
A jury initially awarded Sonos $30 million, but a district judge later overturned the verdict, deeming the patents unenforceable. The appeal, which was heard yesterday, brings the contentious legal dispute back into the spotlight, creating uncertainty for investors.
This legal battle raises fundamental questions about patent law and could have significant implications for Sonos's intellectual property rights and future licensing revenue. The stock's movement suggests investor apprehension as they await the outcome of the Federal Circuit's decision.
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What Is The Market Telling Us
Sonos’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Sonos is down 26.9% since the beginning of the year, and at $10.78 per share, it is trading 28.5% below its 52-week high of $15.08 from January 2025. Investors who bought $1,000 worth of Sonos’s shares 5 years ago would now be looking at an investment worth $751.62.
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