Serve Robotics Target Of New Short Report: 'Subpar Solution For Last-Mile Delivery'

Serve Robotics‘ (NASDAQ:SERV) stock price spiked on Thursday after an analyst initiated coverage along with a bullish rating and price target. A short report, also issued Thursday, highlights the risks and other side of the trade. Serve Robotics stock is showing exceptional strength. What’s behind SERV gains? Serve Robotics Targeted In Short Report Nearly a month after reporting third-quarter financial results, Serve Robotics is the target of a new short report. Edwin Dorsey, on his blog, The Bear Cave, called Serve Robotics “a well-intentioned experiment with poor economics and a subpar solution for last-mile delivery.” The blogger highlights Serve Robotics partnerships with companies like DoorDash and Uber Eats, plus its growing favor from retail investors thanks to being in the robotics sector. But the company has been losing around $80 million on $2 million in revenue over the last twelve months, Dorsey says. Benzinga reached out to Serve Robotics for comment. Dorsey said the robots from Serve travel on public sidewalks. People reportedly flip the devices over and steal the food intended for paying customers. Dorsey claims to have observed Serve robots in person and concluded that the devices impeded people and caused frustration. The blogger also experienced issues with ordering and receiving food items when using Serve as a delivery option from one of the company's partners. Read Also: Meet America’s Biggest Robot Delivery Army As Serve Crosses 2,000 Bots Viral Experiences Customers online have reported experiences of spilled drinks and longer delivery wait times when a Serve robot delivers their food, according to the report. Consumers have also grown frustrated that they must meet the robot outside a building to collect their food, while most delivery drivers bring orders into structures such as businesses and apartments. Dorsey highlights social media posts and videos in his short report that show Serve robots tipped over, cutting off a man using a mobility scooter, robots getting stuck in the middle of crosswalks and a Serve robot being hit by a Waymo self-driving car after running a crosswalk that had a red light. Oppenheimer Goes Bullish Oppenheimer analyst Colin Rusch initiated coverage of Serve Robotics with an Outperform rating and a $20 price target. This implies a potential upside of around 100% from current levels. Rusch called Serve Robotics a "Physical AI pioneer" in the investor note. The analyst highlighted Serve's cost benefits and faster learning cycles as competitive advantages to peers. Rusch also highlighted Serve's third-quarter revenue growth of 210% on a year-over-year basis. The initiation comes with Serve having more than 2,000 delivery robots in the U.S. and plans to expand into more markets in 2026. Serve Stock Gains Serve Robotics stock is up 5.8% to $10.10 on Thursday, versus a 52-week trading range of $4.66 to $24.35. Serve Robotics shares are down 32% year-to-date in 2025. Read Next: Benzinga’s ‘Stock Whisper’ Index: 5 Stocks Investors Secretly Monitor But Don’t Talk About Yet Image: Shutterstock