Serve Robotics Inc. (SERV) had a bit of a rough Monday, with shares slipping nearly 1% as consumer discretionary stocks took a hit. The Nasdaq managed a 0.25% gain, but the S&P 500 dipped 0.14%. It's not the worst day, but it's not exactly a confidence booster either.

The move comes less than two weeks after Serve reported weaker-than-expected second-quarter results on Aug. 6 and sharply lowered its full-year outlook. That was a gut punch. But the company is trying to bounce back, announcing two expansion initiatives on Monday that could broaden its autonomous robotics business.

The pressure had intensified days after longtime partner Uber Technologies Inc. (UBER) disclosed that it had sold its remaining stake in Serve. The companies face differences over their autonomous delivery partnership, and Serve is grappling with weaker-than-expected Uber Eats delivery volumes. It's a classic case of a partnership going sour, and it left Serve caught off guard.

Grubhub Deal Expands Robot Delivery

Serve announced a partnership with Grubhub, a Wonder subsidiary, to launch autonomous robot delivery in Chicago, Los Angeles, and Alexandria. The service will cover more than 100 participating Grubhub merchants in Chicago and nearly 200 in Los Angeles. Wonder's Alexandria location will also use Serve's autonomous delivery network.

But that's not all. Serve also plans to open its first Miami micro-depots. These facilities will support robot staging, charging, dispatch, and maintenance. The company expects this model to help it expand faster while lowering costs. It's a smart move if you're trying to scale up without burning through cash.

Moxi 2.0 Begins U.S. Hospital Rollout

Separately, Diligent Robotics, a Serve company, has begun rolling out Moxi 2.0 to health system customers across the U.S. The upgraded hospital robot offers 10 times more onboard computing power and 10 to 15 times faster perception. It also provides 30% faster charging.

Moxi 2.0 includes upgraded sensors and storage and can operate for up to 18 hours per day. It also uses Diligent's robotic World Model, which draws on fleet data to improve navigation and task execution over time. That's a nice touch, making the robots smarter as they go.

Lingering Earnings Pressure

Monday's announcements provide fresh growth catalysts. However, Serve continues to face pressure following its Aug. 6 earnings report and guidance cut. The broader market also remains challenging for higher-volatility stocks. Consumer Discretionary fell 0.92%, while seven of 11 sectors traded lower. The market's advance-decline ratio stood at 0.6.

The Dow fell 0.35%, while the Russell 2000 declined 0.33%. That weakness suggests investors remain cautious toward smaller companies despite gains in the tech-heavy Nasdaq. It's a tough environment for a stock like Serve, which is still trying to find its footing.

Technical Analysis

Serve remains in a longer-term downtrend. The stock trades below all its major moving averages. Shares are about 1.4% below the 20-day simple moving average of $5.07. They are also roughly 45.5% below the 200-day SMA of $9.16. That's a big gap, and it shows how far the stock has fallen.

The 20-day SMA remains below the 50-day SMA. In addition, the 50-day SMA crossed below the 200-day SMA in February, forming a death cross. That's a bearish signal, and it's been hanging over the stock for months.

However, momentum shows early signs of improvement. The MACD is above its signal line, while the histogram is positive. That suggests selling pressure may be easing. Still, Serve needs sustained buying to confirm a broader trend reversal. It's a start, but it's not a done deal.

Key Support: The $4.50 level could provide nearby support. It also sits close to the stock's 52-week low of $4.32. If that level breaks, things could get uglier.

Analyst Outlook

The stock carries a Buy consensus rating with an average price forecast of $10.92. Forecasts range from $7 to $16.60 across seven analysts. That's a wide range, reflecting the uncertainty around the stock.

Freedom Broker upgraded Serve to Buy on Aug. 14 while lowering its price forecast to $8. Guggenheim maintained a Buy rating and lowered its forecast to $7 on Aug. 10. Oppenheimer maintained an Outperform rating and lowered its forecast to $7 on Aug. 7. So, analysts are still bullish, but they're also trimming their expectations.

Momentum Score

Serve has a Momentum score of 2.07 on the MarketDash scorecard. The weak score reflects the stock's bearish trend and its position below major moving averages. For traders, the key question is whether Serve can hold support near $4.50 while its short-term momentum improves.

Price Action

SERV Stock Price Activity: Serve Robotics shares were down 0.63% at $4.96 at the time of publication Monday, according to market data.