Synaptics Stock: Is the Pivot Into IoT Good for Investors?

January 24. 2024. 7 mins read

Normally, one of the last words a retail investor wants to hear from a CEO of a company he is invested in – other than maybe “bankruptcy” or “federal investigation” – is “pivot.” At best, it denotes a repositioning, as a firm responds to market forces in order to compete and remain relevant. Ideally, management has done its due diligence and changed course in time. At worst, a pivot reflects a last-ditch, desperate attempt to dump a bad business model before the ship fully sinks. 

We’ve certainly seen plenty of examples of the latter. Remember Amyris, a synthetic biology company that pivoted into health and beauty product ingredients? It filed for bankruptcy last year. Another synbio outfit, Intrexon, pivoted from developing genetically modified apples that don’t brown to selling bags of sliced apples. Now called Precigen (PGEN), Intrexon has reinvented itself once again into a biopharmaceutical company developing cell and gene therapies, with a market cap of about $340 million. Winning.

Synaptics stock performance since its 2002 IPO.
Synaptics has been a public company for more than 20 years, so it is reasonable for a gut check to see how it has performed against the Nasdaq during that timeframe. Answer: Pretty darn good. But the pivot into IoT has seen Synaptics stock experience quite a lot of volatility. Credit: Yahoo! Finance

A theoretical example of the forme

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