The ruling comes from a U.S. International Trade Commission and it covers a patent lawsuit that started in 2020. This has Sonos claiming that Google has been infringing on its patents by using its technology in its devices. That includes smart speakers, smartphones, and more.
The judge ruled in favor of Sonos in this case and that has investors in SONO stock excited. This could open the way for Sonos to generate a hefty amount of revenue from licensing fees from tech companies such as Google.
Jefferies analyst Brent Thill said the following about the news in a note obtained by Yahoo Finance.
“Following validation from the ITC of the strength of SONO’s patent portfolio, we increasingly view their patent portfolio as a competitive advantage, granting SONO an edge against competitors in the audio market. We believe their IP will allow them to continue to out-innovate others in the industry, driving rev and market share higher over time.”
It’s worth pointing out that the International Trade Commission won’t reach a final decision on the matter until December. Even so, SONO is experiencing heavy trading today. As of this writing, more than 19 million shares of SONO stock have changed hands. That’s quite the boost compared to the company’s daily average trading volume of about 1.9 million shares.
SONO stock was up 9.5% as of Monday morning and is up 79.7% since the start of the year.
Traders looking for more stock market news today will want to stick around!
InvestorPlace has all the latest stock market coverage you need to know about. That includes what to expect from the stock market today, why Travere Therapeutics (NASDAQ:TVTX) is on the rise, as well as an update on crypto VeChain (CCC:VET-USD). You can get up to speed on these topics at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.