How to Buy Boston Dynamics Stock

While large stocks like Meta and Apple will certainly capture much of the capital that will come from the next tech boom, smaller tech companies focusing on cutting-edge development could also benefit.

One company that many investors are curious about is robotics firm Boston Dynamics. But how can you buy it?

What Does Boston Dynamics Do?

Boston Dynamics is a technology company engaged in research and development of next-generation robotics. The company was founded in 1992 and drew much of its early talent from MIT. In its early years, Boston Dynamics worked to develop realistic training tools for the US military. Today, the company has broadened its horizons and is developing a full line of robots for both military and commercial use.

The company’s most well-known creation is almost certainly Spot, a four-legged robotic dog that attracted a great deal of attention when it was first made public. Spot is arguably the advanced robot that has seen the most widespread industrial adoption, as it has found uses in everything from the oil industry to security.

Thanks to its agile design, Spot is a favored solution for remote data gathering and has an easy-to-use interface that has driven adoption. Recently, the company has even experimented by combining Spot with the well-known ChatGPT chatbot for an enhanced interactive experience.

In addition to Spot, the company has also seen success with another of its signature robots, Atlas. The two-legged robot first became known for being programmed to dance, but it has recently demonstrated much more practical capabilities that could make it extremely useful on future construction sites.

Is Boston Dynamics Stock Publicly Traded?

Unfortunately, Boston Dynamics is not publicly traded at this time. As such, investors cannot purchase shares in the company on the stock market.

Before individuals can buy the stock, the company will have to undergo an initial public offering and list itself on a stock exchange.

Does Boston Dynamics Have a Stock Symbol?

As the company is not listed on any stock exchange, Boston Dynamics doesn’t have a stock ticker symbol.

If the company pursues an IPO in the future, it will be able to choose a ticker symbol to trade under.

Will Boston Dynamics IPO?

Although the company hasn’t listed on the stock market yet, there have been extensive rumors about an IPO for Boston Dynamics.

An IPO, the thinking runs, would allow Boston Dynamics to more quickly generate returns for its parent company while also raising additional funding.

While there is a decent chance that the company will go public at some point in the future, there are no immediate indications of an IPO plan at the moment.

What Company Owns Boston Dynamics?

Over the last decade, Boston Dynamics has been owned by a series of large businesses attempting to leverage the company’s robotics technology in their own industries.

In 2013, Boston Dynamics was purchased by Alphabet. At the time, Boston Dynamics was one of nine startups the tech giant bought when initially building out its own robotics division. Alphabet sold the company to Japanese telecommunications giant SoftBank in 2017.

In 2021, the company was acquired again. This time, Hyundai Motors bought Boston Dynamics in order to further its robotic development programs. The acquisition could prove to be beneficial for both companies.

Boston Dynamics’ technology could give Hyundai an edge in manufacturing and further its development of self-driving cars. Meanwhile, Hyundai’s expertise in mass manufacturing and ability to scale production could allow Boston Dynamics to grow at a rate it would have been unable to achieve on its own.

What Is Boston Dynamics Worth?

When Hyundai completed its acquisition of Boston Dynamics, it valued the company at $1.1 billion. Since Boston Dynamics does not issue public revenue or earnings numbers, it’s difficult to analyze this valuation independently.

Estimates of the company’s annual revenue range as high as $148 million, though this number could be significantly skewed due to the lack of formally reported data.

What is known, however, is that Boston Dynamics has a great deal of room for future growth. When Hyundai acquired the company, this growth potential was highlighted as part of the media surrounding the acquisition. There’s also a good amount of evidence that Boston Dynamics became considerably more valuable in the few short years between the SoftBank and Hyundai acquisitions.

It’s worth noting that Hyundai appears to be rapidly adding value to Boston Dynamics. Last year, the automotive giant announced that it would make a $400 million investment in an artificial intelligence research institute spearheaded by Boston Dynamics.

Investments such as this may help the company develop and deploy new technologies more rapidly while it works to bring its existing robotics solutions to a wider market.

Who Are the Investors in Boston Dynamics?

Although Hyundai now owns the overwhelming majority of Boston Dynamics, it is not the startup’s sole investor.

SoftBank, the previous owner, still retains a 20 percent stake in Boston Dynamics, while Hyundai controls the other 80 percent of the company.

Both of these companies are publicly traded, meaning that the shareholders of Hyundai and SoftBank are also investors in Boston Dynamics by extension.

How to Buy Boston Dynamics Stock

Investors cannot currently buy stock in Boston Dynamics. It is, however, possible to buy shares in Hyundai on the stock market.

The company trades over the counter under the ticker symbol HYMTF. Hyundai Motors has gained over 30 percent this year and is currently trading near the top of its 52-week range.

The stock also yields over 5 percent in dividends, making it attractive as an income-generating investment.

Although buying Hyundai stock does give investors direct exposure to Boston Dynamics, it’s important to understand that this exposure is heavily diluted.

Hyundai’s market capitalization is over $37 billion, nearly 35 times the price it paid for the robotics startup. Most of this value is based on its core vehicle manufacturing business. As such, buying Hyundai stock purely for Boston Dynamics exposure is likely a poor investment strategy.

Is Boston Dynamics Worth Watching as an Investment?

Although it’s impossible to fully evaluate Boston Dynamics without financial statements or a concrete IPO price, we can examine the company’s products and track record to get some idea of its investment potential.

To begin with, it’s clear that Boston Dynamics is a leader in the development of highly advanced robots that could have a great deal of commercial value in the next few years. At over 30 years old, the company is among the oldest and most experienced in this emerging industry.

If it did IPO, Boston Dynamics would also likely issue its first shares in a stock market that was quite favorable to robotics companies.

By 2027, the robotics market is expected to be valued at over $23 billion, This implies a market growth rate of over 15 percent during the next few years. This could support high share prices, but it also introduces the risk of initial overvaluation based on investor enthusiasm.

On the downside, Boston Dynamics could face competitive challenges that would negatively affect its business. Due to the potential for large profits, the robotics field has become quite a lot more crowded in recent years. With larger tech companies still investing heavily in robotics and AI, Boston Dynamics could well be overtaken in the market.

It’s also unclear how close the company is to profitability. In 2020, Boston Dynamics’ CEO stated that the company would likely be making money by 2023 or 2024. There is no definitive way to know how close the company is to reaching this goal, though the macroeconomic challenges of the past three years could certainly have pushed it back.

Ultimately, Boston Dynamics could be a good stock to watch if and when it IPOs. Investors should, however, be aware of the potential for overvaluation in early trading.

High-tech companies like Boston Dynamics often see their share prices run up only to correct shortly afterward. If the company is nearing profitability and can successfully commercialize its impressive array of technologies, though, there could be a good amount of fundamental value behind Boston Dynamics.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.