Arlo Technologies Bollinger Bands Downward, KDJ Death Cross Indicate Bearish Trend

Based on the 15-minute chart of Arlo Technologies, there has been a notable expansion of the Bollinger Bands downward, accompanied by a KDJ Death Cross at 14:15 on October 16, 2025. This indicates that the prevailing market trend is characterized by a dominance of sellers, with the momentum of the stock price shifting towards a downward trajectory and potentially decreasing further.

Arlo Technologies (NYSE:ARLO) has been experiencing significant downward pressure on its stock price, as indicated by the expansion of Bollinger Bands and a KDJ Death Cross on October 16, 2025. These technical indicators suggest a shift in market sentiment, with sellers gaining dominance and the stock price potentially decreasing further.

The Bollinger Bands, which measure volatility and price trends, have expanded downward, indicating increased volatility and a potential downward trend. This expansion is often seen as a signal that the price may continue to move in the direction of the bands, which in this case, is downward. The KDJ Death Cross, which occurs when the K-line crosses below the D-line on the KDJ indicator, is a bearish signal that suggests a potential reversal or continuation of the downtrend.

These technical indicators align with the recent downgrade of Arlo Technologies by Zacks Research, according to MarketBeat. The downgrade was accompanied by mixed analyst opinions, with three analysts rating the stock as "Buy," one as "Hold," and one as "Sell," leading to an average price target of $23.00.

Despite the downgrade, Arlo Technologies reported a quarterly earnings per share (EPS) of $0.17, exceeding expectations and showing a slight revenue increase compared to the previous year. However, the stock's performance has been volatile, with a 1-year low of $7.84 and a 1-year high of $19.25. The business's fifty-day moving average price is $17.25, and its two-hundred-day moving average price is $14.74.

The company has a market capitalization of $1.80 billion, a P/E ratio of -246.54, and a beta of 1.72. Insiders have also sold a significant amount of stock in the last three months, with CEO Matthew Blake Mcrae and CFO Kurtis Joseph Binder selling a total of 1,313,000 shares valued at $22.80 million, the MarketBeat report said.

Institutional investors and hedge funds own 83.18% of the company's stock, with Vanguard Group Inc., Wasatch Advisors LP, State Street Corp, Geode Capital Management LLC, and Emerald Advisers LLC among the top holders, the MarketBeat report added.

Arlo Technologies provides a cloud-based platform for smart home security, with products such as Arlo Essential Cameras, Arlo Home Security System, and Arlo Pro 5S. The company's revenue was up 1.6% compared to the same quarter last year, with a negative return on equity of 6.69% and a negative net margin of 1.38%, the MarketBeat piece noted.

The recent tariff threats and the potential impact on technology supply chains have also affected Arlo Technologies' stock price, with the company's share price taking a sharp hit after President Trump's threat of a massive increase in tariffs on Chinese imports, according to Simply Wall St. The stock's impressive 52% year-to-date return stands out, but the latest tariff-driven volatility has shaved nearly 4% off in a single day.

Analysts remain bullish on Arlo Technologies, with the most popular narrative setting a fair value at $23.20, despite the recent volatility, according to Simply Wall St. The premium assigned to Arlo is based on more than just headline growth, highlighting the potential for future margin gains and recurring revenue. Continual migration of subscribers to higher-priced AI-driven service tiers and the corresponding increase in ARPU (now over $15, up 26% y/y) reinforces the long-term shift to recurring, high-margin (85% non-GAAP service margin) subscription revenue.

In conclusion, Arlo Technologies is facing significant selling pressure due to technical indicators and recent events. However, the company's strong earnings and revenue growth, along with analyst optimism, suggest that the stock may have potential for recovery. Investors should closely monitor the company's performance and the broader market sentiment to make informed decisions.