Serve Robotics Inc. (NASDAQ:SERV) – Investor Update

Recent Analyst Activity

Freedom Capital has recently upgraded Serve Robotics to a Strong‑Buy rating, citing the company’s rapid expansion of its autonomous sidewalk‑delivery fleet and its positioning for “strong growth and eventual profitability.” The analyst’s price objective of $16.00 underscores confidence in Serve’s ability to scale operations across U.S. cities. In contrast, Weiss Ratings has issued a Sell (d–) recommendation, reflecting ongoing valuation concerns. Nevertheless, the broader market sentiment remains bullish, as evidenced by the significant call‑option activity reported by TipRanks on December 31, 2025.

Option Flow and Volatility

On December 31, 2025, the call‑option volume for SERV exceeded normal levels, with 7,304 contracts traded and an implied volatility surge to 84.53%—up more than five points. The most active strikes were the 1/2‑weekly $10.5 and 1/2‑weekly $10 options, collectively attracting around 1,500 contracts. The Put/Call ratio of 0.08 indicates a markedly bullish stance among traders. These dynamics suggest market participants anticipate a substantial price move ahead of the upcoming earnings announcement on March 5, 2026.

Market Positioning and Growth Outlook

Serve Robotics is positioned as a pioneer in autonomous sidewalk delivery for last‑mile logistics. Its fleet of electric delivery robots is scaling rapidly across key U.S. markets, providing a competitive edge in a sector that is attracting increasing capital as e‑commerce demand continues to surge. The company’s current market cap of $751.78 million and a negative price‑earnings ratio of –9.3 reflect its investment‑heavy, growth‑stage status.

Recent Milestones

  • Freedom Capital initiated coverage with a Buy rating and a $16.00 target on December 30, 2025, emphasizing Serve’s rapid fleet deployment.
  • Loop Capital set a $16.00 price objective in a concurrent report, aligning with Freedom’s view.
  • Northland Securities projected a higher $26.00 objective, suggesting a potential upside if execution targets are met.
  • Citigroup reiterated an Outperform rating, reinforcing institutional support for the stock.

Forward‑Looking Assessment

The convergence of bullish analyst coverage, elevated option‑trading activity, and an expanding autonomous delivery platform positions Serve Robotics to capitalize on the broader last‑mile logistics trend. While valuation remains a concern for some analysts, the company’s trajectory toward profitability and its strategic focus on urban delivery networks provide a compelling growth narrative. Investors should monitor the upcoming earnings release for confirmation of revenue acceleration and operational milestones.