Should I buy Sonos stock in 2025? Complete South African Investor Guide

What is Sonos?

How much is the Sonos stock?

The price of Sonos stock is rising this week. SONO is currently trading at $10.59, showing a 24-hour gain of +1.15% and a strong weekly increase of +7.51%. With a market capitalisation near $1.27 billion and an average 3-month daily volume of around 1.96 million shares, Sonos remains highly traded.

The stock’s beta is estimated between 1.34 and 2.06, indicating more volatility than the overall market. For investors in South Africa, Sonos offers potential opportunities but also comes with higher price swings to consider.

Our complete analysis of the Sonos stock

Having reviewed Sonos’s latest financial results and meticulously scrutinised the stock’s performance over the last three years, we harnessed a suite of proprietary algorithms combining financial indicators, technical signals, market data, and peer benchmarking. This ensures a holistic and forward-looking view for investors navigating today’s dynamic technology sector. So, why might Sonos stock once again become a strategic entry point into the premium consumer audio market in 2025?

Recent Performance and Market Context

Sonos (NASDAQ: SONO) is trading at $10.59 as of 30 May 2025, a level that reflects both the lingering aftershocks of operational disruptions and the market’s forward looking reassessment. While the share price has declined 22.2% over the past six months and is down 33.4% year-on-year—a trajectory shaped in part by a major software crisis and leadership transition—the recent bounce (+7.5% on the week) marks a nascent recovery in sentiment.

Several positive events signal a turning point:

• Outperformance Relative to Expectations: In Q2 2025, Sonos delivered revenue of $259.8 million (beating the $251.6 million expected) and adjusted EPS in line with forecasts—underscoring sound demand for core products even during turbulence.
• Executive Refresh and Strategic Restructuring: With Tom Conrad taking over as interim CEO, the company has set a new direction, including a 12% reduction in workforce and resolute cost-cutting initiatives.
• New Product Pipeline and Portfolio Strengthening: Launches such as the Arc Ultra and Sub 4 ahead of the 2024 holiday season, and the anticipated Ace headphone line, have helped Sonos reaffirm its commitment to premium innovation.

The macroeconomic environment for tech and discretionary consumer names is notably favourable, especially as inflation levels off and interest rate cut prospects emerge globally. In South Africa and other growth markets, rising disposable incomes and pent-up demand for premium home electronics present a supportive medium-term backdrop for Sonos’s international revenue ambitions, particularly in EMEA where Sonos generates 28% of sales.

Technical Analysis

From a technical perspective, Sonos currently sits below its 200-day moving average—a well-known consolidation phase after a year of heightened volatility and a sharp drawdown.

• Relative Strength Index (RSI): Ranging between 49.2 and 63.3, the RSI is entering a zone often associated with an imminent bullish reversal, reflecting sellers’ loss of momentum.
• MACD: Marginally negative (0.22-0.27), yet flattening, the MACD histogram suggests stabilisation and a potential inflection point.
• Key Support and Resistance Levels: The recent rebound above the critical support at $7.63 (52-week low) demonstrates robust demand from long-term holders and new entrants. The next major resistance zone is spotted at $16.30, offering substantial upside once sentiment and results confirm a cycle change.

Short- and medium-term technical momentum is clearly shifting. The combination of a neutral RSI with stabilising MACD is a classic setup often preceding renewed buying pressure, particularly as volumes return and the broader technology sector outperforms.

Fundamental Analysis

Sonos’s fundamentals stand out for their resilience during an unprecedented operational setback.

• Revenue Growth & Profitability Trends: Revenues for Q2 2025 rose 3% YoY to $259.8 million, comfortably ahead of consensus. Gross margin (43.7%) remains impressive for the consumer electronics segment, especially for an asset-light business model. While GAAP net loss remains notable, a significantly improved adjusted EBITDA (–$1 million, up $33 million YoY) signals rapid progress towards profitability restoration.
• Valuation Picture: At a trailing price/sales ratio (P/S) of 0.87, Sonos trades at a steep discount to historical averages and sector peers. Price/book stands at 3.28, reflectively modest for an IP-driven tech franchise with pent-up earnings power. The absence of a P/E (due to temporary losses) is mitigated by revenue and cash generation strengths, and analysts’ consensus target ($11.82, with bullish models up to $15) argues for a premium in scenarios of operational normalization.
• Market Position and Brand Power: Sonos leads the premium home audio market through a vertically integrated ecosystem and a fiercely loyal customer base. Its geographic diversification—with strongholds in the Americas (66% revenue), Europe/Middle East/Africa (28%), and a nascent APAC presence—fortifies global opportunity capture.
• Innovation Commitment: The ongoing introduction of advanced products (e.g., Arc Ultra, Sub 4, wireless Ace headphones) and a proprietary closed ecosystem fortify competitive barriers amid rising industry rivalry.

Collectively, these factors form a compelling fundamental bedrock that justifies renewed institutional and retail investor interest at current levels.

Volume and Liquidity

Sonos displays robust liquidity, underpinning investor confidence in potential upward re-ratings:

• Three-Month Average Volume: 1.95-1.97 million shares daily—substantial for a mid-cap, indicating depth and active institutional participation.
• Float Dynamics: With over 120 million shares outstanding and no dominant controlling shareholder, the large public float positions Sonos as a prime candidate for dynamic valuation swings in response to catalysts.

The confluence of high trading volume and a widely held share base facilitates smooth entry and exit for South African and global investors, supporting tactical trading as well as strategic long-term allocations.

Catalysts and Positive Outlook

Several visible and emerging catalysts reinforce Sonos’s positive outlook into 2025 and beyond:

• Product-Driven Growth: The refreshed Arc Ultra soundbar, Sub 4 subwoofer, and upcoming Ace headphones exemplify the company’s ongoing R&D investment and appeal to evolving consumer audio preferences.
• Operational Turnaround: Aggressive cost restructuring, both on the workforce and sourcing fronts, is expected to boost margins and eventual bottom-line recovery.
• Brand Rehabilitation: Steady improvements to the app and customer experience, following the 2024 setback, are gradually restoring brand goodwill—a prerequisite for sales growth acceleration.
• ESG and Sustainability: Sonos’s focus on durable, repairable, and responsibly sourced products aligns with investor and consumer ESG priorities—particularly relevant in South Africa, where sustainability is growing in importance.
• Favourable Sector Tailwinds: Ongoing digitalisation of home spaces, rising demand for premium connected devices, and a supportive global regulatory climate propel both the sector and Sonos forward.

Looking ahead, these structural and tactical drivers suggest the company could return to a growth trajectory, with meaningful operational leverage as volumes recover.

Investment Strategies

Sonos’s current market profile opens up compelling strategies across different timeframes:

Short-Term (1-6 Months)

• Capitalise on technical rebounds from oversold levels, as support at $7.63 appears to have held and sentiment is stabilising.
• Monitor news flow on software updates, product reviews, and interim CEO strategic announcements, which can act as immediate upside drivers.

Medium-Term (6-18 Months)

• Position ahead of key product launches and peak holiday sales cycles, particularly as new offerings (Ace headphones) can surprise to the upside.
• Take advantage of improving margin guidance and restructuring impact, which may begin reflecting in earnings beats and upward revisions.

Long-Term (18 Months+)

• Leverage Sonos’s structural advantages: brand loyalty, innovation pipeline, and entrenched market ecosystem fortify secular growth prospects even as the macro environment normalises.
• Attractive Price/Sales and enterprise value multiples compared to sector averages create scope for significant capital appreciation as profitability resumes.

In all cases, adding Sonos at a technical low—especially ahead of known catalysts—can be an optimal entry strategy, offering significant convexity relative to downside risk.

Is It the Right Time to Buy Sonos?

Sonos combines resilient fundamentals, a compelling value proposition, and clear cyclical and secular catalysts that point towards an inflection in both sentiment and underlying business performance. The recent stock price pullback has reset valuations to levels that seem to represent an excellent opportunity for investors seeking exposure to premium consumer technology with embedded innovation capacity. The company’s ongoing operational turnaround, restored product momentum, and robust liquidity suggest the stock may be entering a new bullish phase driven by both technical and fundamental improvement.

For South African investors looking to diversify into global technology leaders with strong brand equity and recovery runway, Sonos offers a particularly attractive entry point at present levels. While near-term volatility may persist, the medium- to long-term upside potential underscored by multi-sourced analysis justifies renewed interest and allocation consideration. Ultimately, Sonos stands well-positioned to capitalise on digital lifestyle trends and evolving audio consumption, indicating that current levels may be the precursor to a new growth chapter for this iconic home audio brand.

Seizing the opportunity at current valuations, with tangible catalysts on the horizon, Sonos commands attention for investors seeking to align with the next phase of outperformance in the consumer electronics space.

How to buy Sonos stock in South Africa?

Buying Sonos shares online is both straightforward and secure for retail investors in South Africa, provided you use a regulated broker. Whether your goal is to become a direct shareholder (spot buying) or to actively trade price movements with leverage (using CFDs), reputable online platforms allow you to access global markets and manage your investments with ease. Both methods have distinct advantages and suit different investor profiles. To help you make the right choice, you'll find a detailed comparison of leading brokers further down the page.

Spot buying

Cash purchase of Sonos stock involves buying actual Sonos shares listed on the NASDAQ, making you a direct shareholder. Through a regulated broker, you can place orders in USD and your shares are held securely in your account. Typically, South African investors pay a fixed commission for each order—usually between R80 and R150 (or about $5–$8 USD), plus a small currency conversion fee.

Example

If the Sonos share price is $10.59 (about R195 at current rates), with a $1,000 (±R18,500) investment, you could buy around 94 shares, considering a brokerage fee of $5 (about R90).

✔️ Gain scenario: If the share price rises by 10% to $11.65, your shares are now worth $1,100 (±R20,350).

Result: That's a $100 gain – a +10% return (gross, before fees and taxes).

Trading via CFD

CFD trading on Sonos shares allows you to speculate on SONO’s price movements without owning the underlying shares. Contracts for Difference (CFDs) are popular for their flexibility: you can go long (rise) or short (fall), use leverage, and access global stocks through online brokers. Fees typically include the “spread” (the gap between buy/sell prices) and funding costs if you hold positions overnight.

Example

You open a CFD position on Sonos shares with $1,000 (about R18,500) of your capital, using 5× leverage — giving you a market exposure of $5,000 (±R92,500).

✔️ Gain scenario: If Sonos stock rises by 8%, your position increases by 8% × 5 = 40%.

Result: That’s a $400 gain (about R7,400) on your $1,000 stake, before considering spreads and holding costs.

Final advice

Before investing, it is essential to compare the costs, features, and protections offered by different brokers. Fees, available account currencies, trading platforms, and support can all impact your returns. The best investment style—buying shares outright vs. trading CFDs—depends on your personal goals, risk tolerance, and investment horizon. To assist your decision, you’ll find a broker comparison tool further down the page. Remember: informed choices and sound risk management are key to long-term investing success.

Our 7 tips for buying Sonos stock

The latest news about Sonos

Sonos stock rebounds 7.5% this week, outperforming wider tech and consumer electronics sectors. After a difficult year, Sonos shares registered a significant 7.51% gain over the past week, a move that stands out against the broader negative six-month trend and positions the company above analyst revenue expectations. This is particularly relevant for South African institutional and retail investors watching NASDAQ-listed consumer electronics stocks for signs of operational turnaround or positive momentum. The resilience suggests increased confidence following the company’s recent quarterly report and cost discipline efforts, even as the company remains below its year-highs.

Sonos’ Q2 2025 revenue exceeds expectations, thanks to steady performance in EMEA, which encompasses South Africa. The firm reported quarterly revenues of $259.8 million, a 3% year-on-year rise and notably above consensus estimates, fueled in part by ongoing strength in the EMEA region—a key market that includes South Africa. This regional performance is significant for ZA-based analysts, as it indicates healthy demand for premium home audio products and provides a signal of Sonos’ brand durability despite last year's setbacks. The company’s strong gross margin of 43.7% further highlights the success of its premium positioning.

Sonos implements aggressive restructuring and cost reduction, supporting profitability and future growth potential. In response to prior operational challenges, Sonos undertook a company-wide restructuring, cutting 12% of its workforce and streamlining operations. These moves have already yielded a $33 million year-on-year improvement in adjusted EBITDA for Q2. For South African investors, this proactive management is especially pertinent as it signals greater financial discipline and enhances the prospects for sustainable profitability, which is crucial for international investors seeking stability in foreign tech stocks.

New product launches, including Arc Ultra and Sub 4, continue to drive innovation and reinforce Sonos’ competitive edge. Sonos recently expanded its portfolio with the launch of the Arc Ultra soundbar and Sub 4 subwoofer, sustaining its reputation for high-end, innovative audio products. These launches, timed for the global holiday season, are anticipated to fuel further demand in key international regions—which includes South Africa, given the country’s robust consumer electronics and premium lifestyle markets. Product innovation remains a vital axis of differentiation against intensifying competition.

Sonos maintains strong brand reputation and sales channels in South Africa, highlighting ongoing commitment to regional markets. Despite last year’s app-related reputational setback, Sonos continues to be widely distributed in South Africa through official retail partners such as Takealot, Incredible Connection, and specialist AV dealers. The company’s premium channel presence and ongoing marketing investments in the region reflect its long-term commitment and brand equity. For ZA-focused analysts and investors, this stability in local market operations underpins the potential for future revenue resilience and mitigates some risk associated with broader global uncertainties.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.