Is Sonos Inc. (SONO) One of the Best Small Cap Tech Stocks to Invest in Now?

Sonos Inc. (NASDAQ:SONO) is 1 of the best tiny headdress tech stocks to put successful now. On January 5, Jefferies raised its terms people for Sonos to $21 from $19 with a Buy rating, characterizing 2026 arsenic a twelvemonth of gradual AI monetization for the bundle group. While the steadfast expressed assurance that semipermanent worth volition reside successful the bundle layer, it noted that investors whitethorn request to stay diligent arsenic assemblage valuations instrumentality to humanities averages. Furthermore, Jefferies emphasized that much important maturation acceleration is required to mitigate AI disintermediation fears, starring to a much selective concern attack wrong the sector.

In  Q4 2025, Sonos Inc. (NASDAQ:SONO) posted gross of $288 million, which was a 13% summation year-over-year. While full-year gross declined by 5% to $1.44 billion, Sonos successfully reduced its yearly operating disbursal tally complaint by implicit $100 cardinal and grew its non-GAAP EPS by 31% to $0.64. Financial subject was besides evident successful inventory management, which saw a 26% year-over-year simplification to $171 million.

For 2026, CEO Thomas Conrad described the upcoming twelvemonth arsenic a caller section focused connected a refreshed strategy that emphasizes the Sonos level arsenic a cohesive strategy for third-party and first-party AI experiences. Despite the affirmative momentum, the institution faces headwinds from tariffs, which are expected to interaction margins by 300 ground points successful Q1 and 400 ground points successful Q2. Management is proactively mitigating these costs done strategical pricing and promotions. For Q1 2026, Sonos provided gross guidance of $510 cardinal to $560 million.

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Sonos Inc. (NASDAQ:SONO), unneurotic with its subsidiaries, designs, develops, manufactures, and sells audio products and services successful the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

While we admit the imaginable of SONO arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.