A new report from Hunterbrook Media suggests that semiconductor testing giant Teradyne Inc (NASDAQ:TER) is the supplier for the robotic arms of Amazon.com Inc’s (NASDAQ:AMZN) new breakthrough warehouse robot, Vulcan.
What To Know: Following the report, Hunterbrook’s affiliate investment firm, Hunterbrook Capital, announced it has taken a long position in Teradyne.
Per the report, Amazon has touted its Vulcan robot as a “step change” in automation, featuring a “sense of touch” that allows it to handle “picking” and “stowing” tasks previously difficult to automate.
While Amazon promoted the technology, it had not mentioned that the distinctive robotic limbs are supplied by Universal Robots, a Danish company Teradyne acquired in 2015.
Hunterbrook Media identified the supplier through photos and videos from Amazon and CNBC, which clearly show the Universal Robots name and logo on the arm. The gripper attached to the arm is made by Robotiq, a company whose products are designed for compatibility with Universal Robots.
The report suggests that with Amazon planning to automate a large portion of the 14 billion items it handles annually, the deal could represent a roughly $400 million opportunity for Teradyne. This comes as the robotics sector is being propelled by collapsing costs and advancements in AI, such as Nvidia Corp’s platforms which Universal Robots has integrated.
Benzinga Edge Rankings: According to Benzinga Edge stock rankings, which score stocks on four critical factors, Teradyne exhibits a mixed profile. The company’s strongest attribute is its Growth, for which it receives an exceptional score of 87.63.
However, its Momentum score is notably weak at 10.53. The stock’s other metrics are average, with a Value score of 52.50 and a Quality score of 59.13.
Price Action: According to data from Benzinga Pro, TER shares are trading higher by 5.65% to $98.03 Thursday morning. The stock has a 52-week high of $163.20 and a 52-week low of $65.77.
Read Also: Teradyne Announces Election of Two New Independent Directors
How To Buy TER Stock
By now you're likely curious about how to participate in the market for Teradyne – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of Teradyne, which is trading at $98.03 as of publishing time, $100 would buy you 1.02 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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