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How to Buy Arlo Technologies, Inc. (ARLO) Shares - Investment in Arlo Technologies, Inc. (ARLO) Stock

25 August 2025
5 min to read
How to buy Arlo Technologies, Inc. (ARLO) shares – Investment in Arlo Technologies, Inc. (ARLO) stock

Thinking about investing in smart home security? Arlo Technologies (ARLO) represents the future of connected home protection with its innovative AI-powered cameras and subscription services. This company has transformed from a hardware maker to a subscription powerhouse, making it an exciting opportunity for new investors looking to tap into the growing smart home market.

📈 Arlo Stock: Current Price and Market Position

As of August 25, 2025, Arlo Technologies (ARLO) trades at $17.54 on the NYSE. The company has shown remarkable resilience, bouncing back from earlier challenges to deliver impressive Q2 2025 results that exceeded analyst expectations.

Mark your calendar: November 2025 is critical – that’s when Arlo releases its next earnings report. Historically, these quarterly announcements have significantly moved the stock price, creating both opportunities and risks for traders.

Earnings Impact Analysis: How ARLO Reacts to Financial News

Based on recent performance patterns, Arlo stock typically experiences 5-15% price swings around earnings announcements. The Q2 2025 report on August 7th drove the stock up approximately 8% as the company beat revenue estimates by 5% and demonstrated strong subscription growth.

Previous quarterly reports show similar patterns:

  • Q1 2025: +12% following record subscription revenue announcement
  • Q4 2024: +9% after exceeding ARR growth targets
  • Q3 2024: -6% due to temporary hardware margin pressures

The consistent theme? Subscription metrics move this stock more than anything else. When Arlo shows strong growth in its recurring revenue business, investors reward the company generously.

📊 6-Month Price Journey: February to August 2025

Arlo shares have delivered an impressive 46.4% return over the past year, dramatically outperforming the broader market. Here’s how the journey unfolded:

February 2025: Trading around $11.00-$11.74 range
April 2025: Breakthrough to $14.50 on subscription growth news
June 2025: Surpassed $16.00 after announcing $300M ARR milestone
July 2025: Reached $16.51 ahead of Q2 earnings
August 2025: Current price of $17.54 post-earnings surge

The driving forces behind this upward trajectory:

  • Subscription revenue growth: 29.7% year-over-year in Q2
  • Annual Recurring Revenue: Reached $316 million, up 34% YoY
  • Profitability return: Net income of $3.12 million after previous losses
  • Market expansion: Over 5 million paid subscribers globally

🔮 Price Forecast: 2025-2030 Outlook

Near-Term Projections (2025-2026)

2025 Year-End: $21-$23 range (20-31% upside from current levels)
Analysts from MarketBeat project an average target of $23.00, with Raymond James being most bullish at $26.00. The company’s guidance of $133-143 million for Q3 revenue suggests continued momentum.

2026 Forecast: $25-$28 range
As subscription revenue continues to dominate (currently 60.4% of total revenue), higher margin businesses should drive multiple expansion and stock appreciation.

Medium to Long-Term Outlook

2028 Projection: $30-$35 range
By 2028, analysts project Arlo could reach $632 million in revenue and $103 million in earnings if current growth rates persist.

2030 Vision: $40+ potential
WalletInvestor projects ARLO reaching $29.35 by August 2030, but given the company’s accelerating subscription growth, this could prove conservative.

Verdict: BUY – The transition to subscription model, strong Q2 results, and reasonable valuation create an attractive risk-reward profile.

⚠️ Key Risks vs. Positive Signals

Risks to Consider

  • Competition Intensification: The home security market is crowded with giants like Google Nest, Ring (Amazon), and numerous startups. Larger competitors could pressure pricing and margins.
  • Regulatory Challenges: Data privacy laws and consumer protection regulations could increase compliance costs significantly. Changes in import/export rules might affect hardware supply chains.
  • Hardware Margin Pressure: Product gross margins remain slightly negative despite overall profitability. If hardware pricing declines further, it could offset subscription gains.
  • Economic Sensitivity: During economic downturns, consumers may delay smart home purchases or cancel subscription services.

Green Lights for 2025

  • Subscription Momentum: 29.7% YoY growth in service revenue demonstrates strong product-market fit and customer retention.
  • AI Innovation: The launch of Arlo Secure 6 with advanced fire detection, audio analytics, and video search capabilities creates competitive advantages.
  • Profitability Turnaround: Return to net income profitability after previous losses shows operational efficiency improvements.
  • Market Recognition: Hosting the NYSE opening bell in July 2025 signaled institutional validation of their business model transition.

🛡️ What Should a Beginner Trader Do Today?

Strategic Entry Points:

  1. Dollar-cost average: Invest fixed amounts regularly rather than trying to time the market perfectly
  2. Post-earnings dips: Historically, any earnings-related selloffs have proven to be buying opportunities
  3. Subscription metric focus: Watch for quarterly subscription growth above 25% as your primary buy signal

Portfolio Allocation: Limit ARLO exposure to 5-10% of your total portfolio given the stock’s higher volatility (beta of 1.86)

Humorous veteran wisdom: “Trading ARLO is like having a smart security camera – sometimes it alerts you to real opportunities, sometimes it’s just the neighbor’s cat setting off false alarms. The key is knowing which alerts to respond to!”

✅ How to Buy Arlo Technologies, Inc. (ARLO) Shares – Step by Step

Step Action Why It Matters
1 Choose a trading platform Ensure it offers NYSE access and reasonable commission fees
2 Complete account verification Most platforms require ID verification for security purposes
3 Deposit funds Start with an amount you’re comfortable risking while learning
4 Search for “ARLO” Use the ticker symbol, not just the company name
5 Select order type Use limit orders to control your entry price rather than market orders
6 Review and confirm Double-check order details before finalizing your purchase
7 Set price alerts Monitor your investment without constantly watching the screen

💡 Why Pocket Option Appeals to New Investors

For those beginning their investment journey, Pocket Option offers several advantages that make starting easier:

Minimum deposit of just $5 allows you to test strategies with minimal risk while learning the markets. The platform’s 1-minute KYC process means you can upload any government ID and start trading almost immediately. With over 100 withdrawal methods including cryptocurrencies, e-wallets, and traditional banking options, accessing your profits is straightforward and flexible.

The platform’s user-friendly interface makes monitoring positions like ARLO simple, with real-time charts and news integration that helps you make informed decisions about when to add to or reduce your position.

🌍 Arlo in 2025: Smart Security’s Rising Star

Arlo Technologies has successfully transformed from a hardware-focused company to a subscription-driven technology platform. The company now dominates the premium smart home security segment with over 11 million registered households and 5 million paid subscribers.

Their breakthrough came with the AI-powered Arlo Secure platform, which now represents over 60% of total revenue. The recent launch of Arlo Secure 6 introduced groundbreaking features like fire detection, advanced audio analytics, and intelligent video search that competitors are struggling to match.

Interesting Fact: In July 2025, Arlo made history by becoming one of the few companies to host the NYSE opening bell ceremony to celebrate surpassing $300 million in annual recurring revenue – a milestone they achieved in less than six years since founding!

FAQ

What is Arlo Technologies' main business model?

Arlo has transitioned from hardware sales to a subscription-first model, with services now accounting for over 60% of revenue through their Arlo Secure platform offering AI-powered home security features.

How often does ARLO stock pay dividends?

Arlo Technologies does not currently pay dividends as they reinvest all profits into growth initiatives and research & development for their AI security platform.

What are the trading hours for ARLO stock?

ARLO trades on the NYSE during regular market hours from 9:30 AM to 4:00 PM Eastern Time, Monday through Friday, excluding market holidays.

How volatile is ARLO stock compared to the market?

ARLO has a beta of 1.86, meaning it's approximately 86% more volatile than the overall market, making it suitable for investors comfortable with higher risk for potentially higher returns.

What metrics should I watch for ARLO's performance?

Focus on subscription revenue growth (target >25% YoY), annual recurring revenue (ARR), customer retention rates, and service gross margins (currently at record 84%+) as these drive long-term value more than hardware sales.

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