Serve Robotics (NASDAQ:SERV) Shares Gap Up Following Better-Than-Expected Earnings

Serve Robotics Inc. (NASDAQ:SERV) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $9.67, but opened at $10.78. Serve Robotics shares last traded at $10.8720, with a volume of 8,275,943 shares traded.

The company reported ($0.46) EPS for the quarter, topping analysts’ consensus estimates of ($0.49) by $0.03. The firm had revenue of $0.88 million for the quarter, compared to the consensus estimate of $0.77 million. Serve Robotics had a negative return on equity of 43.36% and a negative net margin of 3,821.98%.

Key Serve Robotics News

Here are the key news stories impacting Serve Robotics this week:

• Positive Sentiment: Q4 results & guidance: Q4 revenue (~$0.9M) and EPS modestly beat estimates and management raised 2026 revenue guidance to $26M, improving near‑term visibility. Read More.
• Positive Sentiment: New & expanded partnerships: White Castle will use Serve robots for Uber Eats deliveries and the company continues integrations with Uber Eats and DoorDash — increases merchant count and order channels if density follows. Read More.
• Positive Sentiment: Scale & M&A: Management cites ~2,000 deployed robots, 20 cities, 4,500+ merchant partners and strategic acquisitions (e.g., Diligent Robotics) that broaden addressable markets beyond sidewalk delivery. Read More.
• Neutral Sentiment: Market mechanics: High short interest and heavy call‑option buying earlier created a short‑squeeze dynamic that amplified upside; that same technicality can increase volatility and lead to sharp reversals. Read More.
• Neutral Sentiment: Analyst & PR flow: Several firms reiterated buy/outperform ratings and CEO media appearances have boosted narrative — helpful for sentiment but execution still matters. Read More.
• Negative Sentiment: Insider selling: Multiple Form 4s show CEO, COO, CFO and other insiders sold shares in early March — markets often interpret clustered insider sales as a near‑term negative signal. Read More.
• Negative Sentiment: Execution & cash‑burn risk: Q4 revenue remains small vs. a 2,000‑robot fleet (low per‑robot monetization); 2026 guidance ($26M) is well below earlier implied targets and planned CapEx (~$25M) tightens the cash runway and raises dilution/funding risk. Read More.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. LADENBURG THALM/SH SH raised shares of Serve Robotics to a “strong-buy” rating in a research report on Thursday, December 18th. Weiss Ratings restated a “sell (d-)” rating on shares of Serve Robotics in a research report on Monday, December 29th. Loop Capital set a $16.00 target price on shares of Serve Robotics in a research note on Wednesday, December 31st. Cantor Fitzgerald reiterated an “overweight” rating on shares of Serve Robotics in a report on Monday, November 17th. Finally, Oppenheimer initiated coverage on shares of Serve Robotics in a research note on Thursday, December 18th. They issued an “outperform” rating and a $20.00 price target for the company. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Serve Robotics has a consensus rating of “Buy” and an average price target of $18.80.

Insider Buying and Selling at Serve Robotics

In other Serve Robotics news, CFO Brian Read sold 4,748 shares of the firm’s stock in a transaction that occurred on Thursday, January 8th. The shares were sold at an average price of $15.81, for a total value of $75,065.88. Following the completion of the transaction, the chief financial officer owned 330,588 shares of the company’s stock, valued at $5,226,596.28. This trade represents a 1.42% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, COO Touraj Parang sold 5,998 shares of the business’s stock in a transaction on Wednesday, February 4th. The stock was sold at an average price of $10.33, for a total transaction of $61,959.34. Following the completion of the transaction, the chief operating officer owned 1,323,685 shares of the company’s stock, valued at approximately $13,673,666.05. This trade represents a 0.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 97,040 shares of company stock worth $1,092,355. 5.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Serve Robotics

A number of hedge funds have recently bought and sold shares of SERV. First Trust Advisors LP purchased a new stake in shares of Serve Robotics during the third quarter worth approximately $8,840,000. Geode Capital Management LLC lifted its stake in Serve Robotics by 176.0% in the second quarter. Geode Capital Management LLC now owns 878,668 shares of the company’s stock worth $10,054,000 after acquiring an additional 560,361 shares during the last quarter. Vanguard Group Inc. lifted its stake in Serve Robotics by 25.2% in the third quarter. Vanguard Group Inc. now owns 2,594,869 shares of the company’s stock worth $30,178,000 after acquiring an additional 521,945 shares during the last quarter. Creek Drive Management Group LLC acquired a new position in Serve Robotics during the 4th quarter worth approximately $4,912,000. Finally, State Street Corp grew its holdings in Serve Robotics by 29.5% during the 4th quarter. State Street Corp now owns 1,245,411 shares of the company’s stock worth $12,927,000 after acquiring an additional 283,497 shares in the last quarter.

Serve Robotics Stock Performance

The stock’s 50-day simple moving average is $11.33 and its 200 day simple moving average is $11.64. The company has a market capitalization of $715.01 million, a PE ratio of -6.04 and a beta of 0.90.

About Serve Robotics

Serve Robotics develops and operates autonomous sidewalk delivery robots designed to transform last-mile logistics for restaurants, retailers and grocery brands. By combining proprietary hardware, sensor suites and dispatch software, the company enables on-demand deliveries of food, beverages and consumer goods while minimizing reliance on traditional vehicle fleets.

The core Serve robot integrates four-wheeled mobility, LiDAR and vision cameras with AI-driven navigation algorithms to detect obstacles, traverse urban sidewalks and interact safely with pedestrians.