Arlo Technologies Shares Soar 11.03% on $300M ARR Milestone

Arlo Technologies (ARLO) shares surged 11.03%, reaching their highest level since July 2024, with an intraday gain of 11.58%.

The strategy of buying ARLO shares after they reach a high and holding for one week resulted in significant returns over the past five years. The strategy achieved an overall return of 276.93%, surpassing the benchmark return of 50.09% by 226.84%. Although the strategy had a maximum drawdown of -40.49% and a Sharpe ratio of 1.37, indicating some risk and moderate returns, the compound annual growth rate (CAGR) was 73.95%, reflecting the strategy's overall effectiveness.

Arlo Technologies has recently achieved a significant financial milestone by surpassing $300 million in annual recurring revenue (ARR). This growth is primarily driven by the expansion of its AI-powered smart security subscriptions, indicating strong performance and expansion in its subscription services.