As per Dorsey, any growth at Serve Robotics will fall short of investor expectations for multiple reasons.
- Dorsey noted that several restaurants have dropped Serve as a partner or not scaled beyond initial testing.
- According to data from Koyfin, all the six analysts covering SERV rate it a ‘Buy’.
- Serve is now slated to report fourth quarter 2025 earnings on March 11.
Shares of robot operator Serve Robotics (SERV) dived 5% on Thursday after short-seller Edwin Dorsey flagged “more problems” at the company in his “Bear Cave” substack newsletter.
As per Dorsey, any growth at Serve Robotics will fall short of investor expectations for multiple reasons including resident dislike around sidewalk delivery robots and poor performance of these robots in traffic.
He noted that several restaurants have dropped Serve as a partner or not scaled beyond initial testing.
“In short, The Bear Cave believes 2026 will be the year reality erodes expectations for Serve shareholders,” Dorsey said in his newsletter.
Previous Concerns
In December, Dorsey published a post where he wrote, “The Bear Cave believes Serve Robotics is a well-intentioned experiment with poor economics and a subpar solution for last-mile delivery.”
The Bear Cave then also noted that the company faces intense competition from other robot delivery startups such as Starship, Nuro, Avride, and Coco Robotics.
Analyst Take On Serve
According to data from Koyfin, all the six analysts covering SERV rate it a Buy. The 12-month average price target on the stock is $19.33, representing an upside potential of over 100% at the time of writing.
In January, Northland analyst Michael Latimore even named Serve Robotics as a top pick for 2026, calling it “one of the best investments in physical AI” with “myriad 2026 catalysts.” The firm contends that Serve has “solved one of the most difficult problems in technology,” namely that of the virtual driver, while maintaining an ‘Outperform’ rating on the shares.
Serve is now slated to report fourth quarter 2025 earnings on March 11. Wall Street on average expects the firm to report loss per share of $0.54.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around SERV stock stayed within the ‘bullish’ territory over the past 24 hours, while message volume remained at ‘normal’ levels.
SERV stock has gained 13% over the past 12 months.
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