SERV

Serve Robotics (SERV) stock plunged 25.7% this week after Northland Securities cut earnings estimates and projected continued losses through 2028. The company filed to register 4.13 million additional shares, raising dilution concerns. With quarterly net losses of $64.1 million and minimal commercial revenue, investors are questioning whether the autonomous delivery robot company can achieve profitability before depleting its $235.4 million cash reserves.

Serve Robotics (SERV) significantly cut its 2026 revenue guidance to $9-10M from $26M, primarily due to failed Uber delivery growth expectations. The company is implementing cost discipline measures, reducing operating expense guidance to $140-150M and capex to $15-17M. While DoorDash deliveries grew 50% sequentially and recurring revenues exceeded 50% of total revenues, the company faces challenges in achieving positive gross margins and relies on improved utilization and monetization.