I received an offer from OOMA for low cost alarm monitoring, similar to Ring.
I have an offer from Linksys to test a new “motion detection alarm” using the access points. (yeah, kinda strange) What if Alexa used AI to monitor for strange sounds and allowed you to arm/disarm through voice recognition? She’s already an eavesdropper!
I don’t think the “Custom Home” guys have to worry about valuations, but I don’t think there’s much loyalty in average residential and so much DYI with professional monitoring self service at a discount.
I spoke to one of my friends at Vivint, he's been there for many years and has a very large team under him. He tells me it's time to get out of Vivint. It doesn't sound good for the company. He says without this deal Vivint is SOL.
Vivint was built like a lot of the resi companies-- all valuation based on RMR multiple to get cheap debt to finance further growth. When the cheap debt evaporates and attrition catches up the model implodes.
Vivint and ADT are less security companies and more so consumer debt plays. The dead giveaway for this should have been when vivint went to citizens bank to start holding the paper rather than themselves.
Thanks for sharing! I had not noticed that, below is their stock chart:
One thing I don't understand is that despite these big gains, Google is showing the market cap at less than $3 billion. Google could be wrong here but when VVNT when public the deal was announced at $4 billion. Anyone have any ideas on that discrepancy?