### Symbotic Stock Plummets 36% Following Discovery of Accounting Errors

Shares of AI-driven robotics company, Symbotic, experienced a severe drop of 36% on Wednesday, triggered by revelations of significant accounting errors. This sell-off was driven by a wave of investor concerns after the company's early Wednesday announcement that it had identified errors while preparing its fiscal 2024 annual report, which ended on September 28.

The disclosed accounting mistakes came in addition to previously reported timing-related errors from November 18, which had no net impact on the overall fiscal year results. The new errors, however, were found in the Q2, Q3, and Q4 reports and are expected to negatively impact several crucial financial metrics.

Symbotic is now postponing its fiscal 2024 annual report filing with the Securities and Exchange Commission (SEC) to correct these issues, resulting in a restatement of its fiscal year results. The company has until December 12 to file the report without facing any penalties.

The restatement is expected to lower system revenue, system gross profit, income before income taxes, and adjusted EBITDA by approximately $30 million to $40 million. This is a significant revision that has understandably rattled the investor community. Furthermore, Symbotic has reduced its guidance for the first quarter of fiscal 2025, now anticipating revenue between $480 million and $500 million, down from the previous range of $495 million to $515 million. The outlook for adjusted EBITDA has also been cut drastically from $27 million to $31 million to a mere $12 million to $16 million.

The dramatic drop in adjusted EBITDA—a key profitability metric—by more than 50% is particularly alarming and has significantly impacted investor sentiment, as profitability metrics are crucial for stock valuations.

This surge in investor pessimism resulted in a sharp decline in Symbotic’s stock price. However, until the company officially files its updated financial report, it remains difficult for investors to make well-informed decisions regarding the stock. As a result, the stock may experience heightened volatility in the short term as market participants react to the unfolding situation.

Notably, Symbotic’s largest customer and an investor is Walmart, and the company's AI-powered robots also utilize Nvidia’s GPU chips. Despite the current turmoil, Nvidia's stock continues to be regarded as a more stable investment for those interested in the robotics sector, given its widespread use in AI technology for autonomous machines.

As of now, long-term investors are advised to exercise caution and await the official fiscal 2024 results before making any investment decisions regarding Symbotic’s stock.