CE Pro February 2023 - 8

Industry Pulse
NEWS | ANALYSIS
Smart Home Stocks
Battered in 2022
55 public companies in CE Pro Smart
Home Stock Index experience 32%
average drop in stock price in 2022;
only 4 companies show gains.
By Jason Knott
FOLLOWING several years
of strong gains, publicly
traded companies engaged
in the smart home industry
fell back to earth hard in
2022, with an average stock
price loss of 32% for the
year. The poor performance
mirrored the overall market
conditions during which the
Dow Jones Industrial Average
lost 9%, the NASDAQ
plummeted 33% and the
S&P 500 fell 19%.
Of course, nearly all the
55 companies in the CE Pro
Smart Home Stock Index are
highly diversified businesses,
so any rise or fall in their
stock price is not necessarily
directly related to the
performance of the company's
smart home interests.
There are a handful of " pure
play " smart home companies
on the list - Vivint, ADT,
Resideo, Alarm.com and
Snap One - and several
performed well.
Vivint Smart Home, the
No. 2 company in the CE Pro
100, was the biggest public
company stock winner in
2022... by far. The Ogden,
8 | CE Pro February 2023
Utah-based company saw
its stock rise an amazing 21%.
Much of that gain came in
December after utility giant
NRG Energy announced on
December 5 it was acquiring
Vivint for a total transaction
price of $5.2 billion, including
$2.8 billion cash as a windfall.
Following the announcement,
Vivint's stock skyrocketed
33% in one day.
Not coincidentally, the
third-largest stock price
gainer last year was another
installation company: ADT.
The No. 1 company in the CE
Pro 100, ADT saw its stock
price climb 8% for the year.
Among the notable actions
that helped ADT thrive in
the otherwise horrible stock
market was the announcement
that State Farm Insurance
acquired 15% of the
company in September. ADT
also expanded its partnership
with Google, which had
invested $450 million into it
back in August 2020.
The second-biggest gainer
in terms of stock price in
2022 was Belden, which had
a 9% stock price increase.
The cable manufacturer
continues to be on the
comeback trail from a turbulent
2020 when its stock fell
24%. In 2021, Belden's stock
bounced back up 57% gain.
The 2022 increase looks
like a continuation of its
comeback.
The only other stock that
showed an increase in 2022
was Honeywell, which was
newly added to the CE Pro
Smart Home Stock Index
this year. The HVAC giant
still has a strong market
share with smart thermostats
among integrators,
even though it spun off
Resideo as a pure-play
smart home company several
years ago.
The other aforementioned
pure-play stocks, Resideo
(down 37%), Alarm.com
(down 42%) and Snap One
(down 65%), did not fare
well in 2022.
Other new companies on
the Index this year are:
Cisco, makers of networking
gear installed
by integrators
Fortune Brands, owners
of Moen and its smart
water system targeted
at the custom channel,
as well as new owners
of Yale and August
smart locks. Both those
brands were recently
acquired from Assa
Abloy.
SmartRent, makers of
smart home solutions
installed by authorized
integrators for
multifamily property
managers
Removed from this Index
for 2022 was AT&T. The former
owners of DirecTV sold
that satellite TV division in
early 2021.
The biggest stock price
drops in 2022 belonged to:
Summit Wireless Technologies
(WiSA), which saw its
stock fall 92%. That is following
a year in which the
stock had risen a whopping
354%.
Tuya, Arlo, Dish, Philips,
SmartRent, Xperi Corp.,
DSP Group and IAC Interactive
also had dramatic
drops in their stock prices
in 2022.
cepro.com
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CE Pro February 2023

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