Ubiquiti is the IBD Stock of the Day as the maker of wireless networking gear forges a new entry point. Ubiquiti stock has gained 22% in 2025 as the company's enterprise business gains traction.
On the stock market today, Ubiquiti shares gained a fraction to close at 411.72. In another development, Hewlett Packard Enterprise on Tuesday closed its $14 billion acquisition of Ubiquiti rival Juniper Networks.
Hewlett Packard and Juniper settled a Department of Justice antitrust lawsuit aimed at blocking a merger on Saturday.
As part of the settlement, Hewlett Packard agreed to divest its global Instant On wireless networking switch business which targets small offices and retail locations. It competes with Ubiquiti's UniFi products. Ubiquiti could see upside from the Hewlett Packard divestiture.
Meanwhile, Ubiquiti stock has rebounded from its 50-day moving average as well as its 21-day exponential moving average. It holds an early buy point at 417.74.
From an earlier cup-with-handle base, there's a standard entry point of 465.
Ubiquiti Stock: Enterprise Market Growth
Founded in 2005, Ubiquiti initially made wireless network gear to provide internet services in rural U.S. areas and overseas. In U.S. rural areas, wireless internet service providers use unlicensed radio spectrum.
Ubiquiti started selling networking gear in the enterprise market in 2011. More recently, its UnFi product line also has been gaining traction with enterprise customers.
In its fiscal third quarter that ended March 31, Ubiquiti reported adjusted earnings of $3 a share, up 28%, while revenue rose 35% to $664.2 million. Enterprise revenue climbed nearly 42% to $586 million.
"Despite continued strength in enterprise and the fact that we continue to expect double digit revenue growth in the business this fiscal year, we expect the segment could see heightened competition moving forward," Barclays analyst Tim Long said in a recent note to clients.
He added: "Higher shipping costs continue to pressure the business and we expect higher tariff costs to materially pressure margins (and potentially cause demand erosion) moving forward."
In rural areas, Ubiquiti faces more competition from fiber-optic network buildouts subsidized by the U.S. government as well as satellite-based internet services, Long said.
Ubiquiti Technical Ratings
Further, Investor's Business Daily gives Ubiquiti stock a Composite Rating of 96 out of a best-possible 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Also, Ubiquiti stock has an Accumulation/Distribution Rating of C. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. Its current rating indicates more funds are buying than selling.
The rating, on an A+ to E scale, measures institutional buying and selling in a stock. A+ signifies heavy institutional buying, E means heavy selling. Think of the C grade as neutral.
Lastly, Ubiquiti stock holds an average true range mark of 3.11%. The ATR metric, available on IBD's MarketSurge charting tool, offers some guidance amid market volatility. It gauges the characteristic breadth of a stock's behavior.
Ubiquiti Stock Shifts Exchanges
Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Further, stocks that tend to make more incremental moves have lower ATRs.
IBD generally suggests stocks with 21-day ATRs of 8% or better.
Some investors may be familiar with the company's former ticker, UBNT. In August 2019, Ubiquiti stock began trading on the New York Stock Exchange as UI, moving from the Nasdaq. The company changed its name from Ubiquiti Networks.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
