This high-flying automation play may be a good buy after the post-earnings selloff

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With the earnings season in full swing, most mega-cap companies have delivered solid results amid the AI frenzy. However, a high-flying AI and automation play failed to impress investors this quarter, resulting in its stock plunging. Shares of Symbotic ($SYM), the maker of AI-powered robotics for the supply chain, plunged 23% yesterday, even though the company met and exceeded Wall Street estimates.

The main reason behind the sell-off is the stock’s stellar performance in the past year and a half, which left investors wanting more. As you can see below, SYM stock has soared 270% since it went public in June 2022 via a reverse merger, an impressive performance in a short period.

SYM is still a very expensive stock due to the multi-billion-dollar contracts that guarantee hyper-growth rates for the foreseeable future. It’s a promising name but not without its risks, and yesterday’s sell-off might be an opportunity to open a new position in this name. Let's see why.

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