The Housing Boom Could Spur a Boom in Smart-Home Stocks (SPYR, RNG, ALRM, ADT, REZI, VVNT)

Home prices are blasting off. We are back in a real estate boom as millennials and zoomers finally settle down and look to start families. Along with low and rising interest rates – get it while the gettin’s good – and a growing post-pandemic economy, 

According to the U.S. Census Bureau, there are 138 million housing units in the United States. And many of them are changing hands. As prices rise, sales volume picks up, which drives competition between potential sellers. As a result, we are seeing an emerging boom in home appliances, home refurbishment, furniture, and everything in between. 

But this is the 21st century, folks. 

That means we are also setting up an emerging boom in the smart-home internet-of-things space, which could focus increasing attention on smart-home stocks like RingCentral Inc (NYSE:RNG), SPYR Technologies (OTC US:SPYR), AlarmCom Hldg Inc (NASDAQ:ALRM), ADT Inc (NYSE:ADT), Honeywell International Inc (NASDAQ:HON), Resideo Technologies Inc (NYSE:REZI), Vivint Smart Home Inc (NYSE:VVNT), Apple Inc (NASDAQ:AAPL), and Alphabet Inc (NASDAQ:GOOG).

With that in mind, we take a closer look below at some of the more interesting recent catalysts in the space.

 

RingCentral Inc (NYSE:RNG) engages in the provision of global enterprise cloud communications and collaboration solutions. RNG has become one of the key players in the IoT and smart home space.

The firm’s solutions provide a single user identity across multiple locations and devices, including smartphones, tablets, PCs and desk phones; and allow for communication across multiple modes, including high-definition voice, video, SMS, messaging and collaboration, conferencing, online meetings and fax. It sells its products under the RingCentral Professional, RingCentral Glip, and RingCentral Fax brands. 

RingCentral Inc (NYSE:RNG) recently announced financial results for the second quarter ended June 30, 2021, highlighted by news that total revenue increased 36% year over year to $379 million, subscriptions revenue increased 37% year over year to $351 million, and total Annualized Exit Monthly Recurring Subscriptions (ARR) increased 37% year over year to $1.5 billion.

“Second quarter results were outstanding, as contributions from our upmarket momentum and key partners including Avaya, Atos, AT&T, BT, and Telus continued to increase,” said Vlad Shmunis, RingCentral’s founder, chairman and CEO. “As businesses embrace hybrid workforces, they require next generation mobile-first platforms that support team messaging, video meetings, and phone system capabilities. RingCentral, with its unparalleled track record of trust, innovation, and partnerships, and its differentiated MVP platform, now seamlessly integrated with an industry leading cloud contact center solution, is uniquely positioned to meet these communication and collaboration needs.”

Even in light of this news, RNG hasn’t really done much of anything over the past week, with shares logging no net movement over that period. 

RingCentral Inc (NYSE:RNG) managed to rope in revenues totaling $379.3M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 36.4%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($325.3M against $446.8M, respectively).

 

SPYR Technologies (OTC US:SPYR) frames itself as a technology company that, through its subsidiary, Applied MagiX Inc., develops and resells Apple ecosystem compatible products with an emphasis on the growing multi-billion-dollar smart home market. 

SPYR is the most speculative name on our list today, but it could ultimately be the most explosive opportunity given how the company is piling up major catalysts this year while shares fly under the radar.

SPYR Technologies (OTC US:SPYR) most recently announced Applied Magix’s planned release of new car accessories. The first accessory is expected to be a MagixPower car charger with dual USB-C ports and Power Delivery (PD) capability.

According to its release, Applied Magix launched the MagixDrive Wireless CarPlay adapter in June, which was the company’s first branded and inaugural Apple CarPlay product, allowing users to access CarPlay wirelessly using an iPhone. Going forward, Applied Magix plans to release several other accessories for the smartCar. The MagixPower car charger with dual USB-C ports and Power Delivery (PD) capability is expected to be the first in a series of accessory launches.

“With the 30W PD capabilities of our Truly Convenient charger in your car, not only will your iPhone and iPad charge much faster, reaching 50% charge in half an hour, and 80% charge in an hour, but our charger also provides two USB-C ports, benefitting passengers’ iPhones as well. Sharing is caring, after all,” says Dr. Harald Zink, CEO of Applied Magix.

SPYR Technologies (OTC US:SPYR) is working to start driving sales growth ahead. The company also recently announced the engagement of TVA Media Group (TVA) to assist with its marketing initiatives to accelerate the sales growth for its MagixDrive wireless Apple CarPlay devices, including two upcoming national broadcast TV commercials designed to sell MagixDrive by means of direct response by the consumer. These commercials will air nationwide at a minimum of 48 times in every major city within the U.S., on national cable and/or satellite channels which is the equivalent of 10,000 localized ad spots.

 

ADT Inc (NYSE:ADT) has evolved into a core smart home player after being a leader in home security since before the internet era began. 

The company engages in the provision of security, automation, and smart home solutions. Its products include security panels, security cameras, ADT mobile application, and identity theft protection. The firm also offers home security systems, fire and life safety, smart home automation, security for renters, and multifamily solutions and services.

ADT Inc (NYSE:ADT) recently announced reported results for the second quarter of 2021, with some strong highlights. Gross recurring monthly revenue (RMR) additions grew 28% and end-of-period RMR of $352 million increased by 4%. The company also noted solid customer retention with attrition at just 13.3%.

“We continue to make substantial progress against our key priorities for 2021, including growing our RMR additions and our recurring monthly revenue base, improving the performance of our Commercial business, and driving innovation both through our internal expertise and through our strategic partnerships. I want to thank our entire ADT team for serving our customers and delivering solid results for our shareholders,” stated Jim DeVries, ADT’s President and CEO. “From mobile to residential to commercial, the breadth and scope of service ADT provides is unmatched in the marketplace. We are well positioned to lead the way in the fast-growing markets for smart home and commercial protection, leveraging our trusted brand to drive profitable growth through premium services, innovative technology, and best-in-class partnerships.”

While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action ADT shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -3% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. 

ADT Inc (NYSE:ADT) managed to rope in revenues totaling $1.3B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of -2%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($156.5M against $1.4B, respectively).

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