Shares of Serve Robotics Inc. (SERV) plummeted 9.75% during intraday trading on Thursday, despite receiving a positive research report from Wedbush analysts. The stark contrast between the stock's performance and the upbeat analyst outlook has left investors puzzled.

According to the Wedbush report, Serve Robotics is well-positioned to create multiple revenue streams for steady top-line growth. The company is leveraging the increasing demand for autonomous last-mile delivery, driven by consumer expectations for fast and cost-effective delivery services. Wedbush highlighted that Serve Robotics' robot fleet is capable of catering to major delivery platforms such as DoorDash and Uber Eats, with expectations of ramping up utilization rates and expanding its reach in the last-mile delivery market.

The report also noted that Serve Robotics posted in-line Q3 revenue, attributing it to increased delivery volumes in key markets like Los Angeles, Miami, Dallas, and Atlanta. Despite these positive factors and Wedbush reiterating its outperform rating with a $22 price target, the stock's significant drop suggests that other factors may be at play. Possible explanations for the disconnect between the positive outlook and the stock's performance could include broader market pressures, profit-taking by investors, or concerns not addressed in the analyst report. As the trading day progresses, investors and analysts will be closely watching for any additional news or market dynamics that might explain this unexpected stock movement.