With upside potential of 66.04%, Arlo Technologies, Inc. (NYSE:ARLO) ranks among the stocks under $20 that will explode. The stock received an “Outperform” rating from Wall Street, building on a quarter that already drew analyst attention.
On May 18, 2026, Oppenheimer initiated coverage of Arlo Technologies, Inc. (NYSE:ARLO) with an “Outperform” rating and a $20 price target. The analyst said Arlo has executed one of the more successful business model transitions in consumer hardware, evolving from a low-cost camera vendor into a premium, service-first recurring revenue platform supported by a growing roster of strategic distribution partners. The firm pointed to accelerating subscription momentum and what it called a structural mispricing relative to Arlo’s services-mix profile.
The analyst noted that Arlo Technologies, Inc. (NYSE:ARLO)’s annual recurring revenue in 2025 grew 28% to $330 million, which, in his analysis, underlines the strength and momentum of this shift.
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On the earnings side, Arlo Technologies, Inc. (NYSE:ARLO) reported subscriptions and services revenue of $90.1 million for the quarter ended March 29, 2026, up 30.9% year-over-year. Annual Recurring Revenue reached $356.9 million, growing 29.2%. Adjusted EBITDA rose 85.3% to $30.4 million, and non-GAAP EPS came in at $0.28.
CEO Matthew McRae pointed to Arlo Technologies, Inc. (NYSE:ARLO)’s acquisition of Aloe Care Health as a step toward expanding AI-powered aging-in-place services.
Arlo Technologies, Inc. (NYSE:ARLO) is a smart home security company. It develops cloud-based platforms, wireless security cameras, video doorbells, floodlights, and alarm systems for residential and commercial users.
While we acknowledge the risk and potential of ARLO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ARLO and that has 10,000% upside potential, check out our report about the cheapest AI stock.
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