LAS VEGAS — Audio and video tech leader Dolby Laboratories showed progress in expanding its reach into new markets at the CES 2024 tech trade show this week. The company's performance at the show impressed a Wall Street analyst.
William Blair analyst Ralph Schackart reiterated his outperform rating on Dolby stock after attending Dolby's investor event at the show on Wednesday.
On the stock market today, Dolby stock rose a fraction to close at 85.75.
At CES 2024, Dolby highlighted increased adoption of its Dolby Atmos and Dolby Vision technologies across various markets.
Automakers Drive Off With Dolby Tech
For instance, Dolby Atmos audio technology has increased its presence among automakers.
At the show, Dolby announced a collaboration with Mercedes-Benz, Amazon.com and Amazon unit Audible where Mercedes-Benz customers will be able to listen to content from both Audible and Amazon Music in Dolby Atmos within their vehicles.
More than 10 automobile manufacturers globally have either begun shipping vehicles enabled with Dolby Atmos or have announced plans for integrating Dolby Atmos capability within their vehicles.
Dolby Atmos is mostly in luxury cars now but eventually will move to less expensive vehicles, Schackart said.
"Incremental licensing agreements are consistent with Dolby's long-term growth strategy," Schackart said in a client note. "In the near term, we believe the auto market has the most incremental leverage to Dolby's revenues given the higher revenue per vehicle, compared to other devices such as mobile phones, PCs, etc."
CES 2024: TV Makers Step Up To Add Dolby
Meanwhile, TV manufacturers are furthering their adoption of Dolby Atmos sound tech.
China's Hisense announced at CES 2024 that it will begin supporting Dolby Atmos FlexConnect. FlexConnect allows users to easily pair wireless speakers with their TV's sound system. Rival TCL announced late last year that it would integrate FlexConnect into new TV models.
Also, MediaTex said it would integrate FlexConnect in its Pentonic smart TV platform.
China's TCL revealed at CES 2024 that its high-definition televisions and soundbars will use Dolby Atmos audio technology.
South Korea-based LG Electronics announced at the show that its OLED displays will use Dolby Vision Filmmaker Mode for enhanced cinematic visuals.
Dolby Stock In Consolidation Pattern
Additionally, Dolby Vision is expanding its reach into PC gaming monitors. Asus and Dell's Alienware unit announced new gaming PC monitors that will support the Dolby Vision experience. Dolby Vision enhances visuals with more vivid colors, more realistic images and finer details.
Further, Dell announced at CES 2024 that its latest XPS laptops will include Dolby Vision and Dolby Atmos.
Samsung's Harman unit demonstrated Dolby audio innovations, including the latest in home theater surround sound, at its booth at CES 2024. Harman sells audio products in the home, auto, portable and wearable categories under brands like JBL and Infinity.
Harman partners with Dolby because so much content is tuned to Dolby formats such as Dolby Atmos, Xin Zhao, director of platform planning for Harman, told IBD. Also, Harman innovates on top of the Dolby source content with its hardware, he said.
According to IBD MarketSmith charts, Dolby stock has been in a consolidation period for 26 weeks. Dolby stock has a buy point of 91.02, MarketSmith charts show.
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