Weakness In Alarm.com Shares Partly Due To Apple HomeKit News

Shares of AlarmCom Hldg Inc ALRM have been under pressure partly on account of Apple Inc’s AAPL HomeKit announcement, William Blair’s Bhavan Suri said.

Apple’s update on HomeKit included the inclusion of a new HomeKit app in the iOS 10 update. Since HomeKit can be used for both home automation and security, this has led to investor concern surrounding the negative impact on Alarm.com, analyst Suri mentioned.

Not A Cause For Concern
“We are not overly concerned,” Suri commenting, mentioning the following about HomeKit:

1. Targets the DIY market
2. Works only with HomeKit and iOS devices
3. Has no backend for security dealers
4. Lacks cellular connectivity, making it less secure

The analyst pointed out that Alarm.com was a HomeKit partner and that HomeKit had been originally announced a couple of years back and received little traction since. He added that Alarm.com’s stock was trading at an attractive valuation.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!