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

Serve Robotics Inc. (NASDAQ:SERV)’s share price gapped up before the market opened on Wednesday following a stronger than expected earnings report. 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 trading hands.

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

Key Stories Impacting Serve Robotics

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

A number of analysts recently issued reports on SERV shares. Oppenheimer initiated coverage on Serve Robotics in a research report on Thursday, December 18th. They issued an “outperform” rating and a $20.00 target price on the stock. LADENBURG THALM/SH SH raised Serve Robotics to a “strong-buy” rating in a research report on Thursday, December 18th. Northland Securities restated an “outperform” rating and issued a $26.00 price target on shares of Serve Robotics in a research note on Friday, January 2nd. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Serve Robotics in a research report on Monday, December 29th. Finally, Loop Capital set a $16.00 price objective on Serve Robotics in a report on Wednesday, December 31st. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Buy” and a consensus price target of $18.80.

Insiders Place Their Bets

In related news, CEO Ali Kashani sold 13,500 shares of Serve Robotics stock in a transaction dated Tuesday, March 10th. The stock was sold at an average price of $9.72, for a total transaction of $131,220.00. Following the completion of the transaction, the chief executive officer owned 3,334,914 shares in the company, valued at approximately $32,415,364.08. This trade represents a 0.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Touraj Parang sold 5,998 shares of the business’s stock in a transaction that occurred on Wednesday, February 4th. The stock was sold at an average price of $10.33, for a total value of $61,959.34. Following the transaction, the chief operating officer directly owned 1,323,685 shares in the company, valued at approximately $13,673,666.05. This trade represents a 0.45% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 97,040 shares of company stock worth $1,092,355. Company insiders own 5.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd raised its stake in Serve Robotics by 527.1% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 52,874 shares of the company’s stock valued at $549,000 after acquiring an additional 44,442 shares during the period. Walser Wealth Management Company A Ltd Liability Co bought a new position in Serve Robotics during the fourth quarter worth $115,000. Invesco Ltd. increased its holdings in shares of Serve Robotics by 43.1% in the fourth quarter. Invesco Ltd. now owns 35,433 shares of the company’s stock valued at $368,000 after purchasing an additional 10,678 shares during the last quarter. Creek Drive Management Group LLC bought a new position in shares of Serve Robotics in the fourth quarter valued at about $4,912,000. Finally, Mercer Global Advisors Inc. ADV bought a new position in shares of Serve Robotics in the fourth quarter valued at about $106,000.

Serve Robotics Trading Down 9.9%

The company has a market cap of $715.01 million, a price-to-earnings ratio of -6.04 and a beta of 0.90. The business’s 50 day moving average price is $11.33 and its 200-day moving average price is $11.64.

Serve Robotics Company Profile

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.