Align Technology: Moat Is Deteriorating Gradually

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Sep. 30, 2025 1:12 AM ETAlign Technology, Inc. (ALGN) StockALGNMario Silva602 FollowersAlign Technology is rated a hold due to deteriorating fundamentals, declining revenue growth, and eroding competitive advantages post-COVID-19.ALGN faces margin pressure from increased competition, ineffective patent protection, and a shift toward cheaper, direct-to-consumer clear aligner alternatives.Valuation models suggest limited upside, with intrinsic value estimates below current levels unless management can restore growth or strengthen the company's moat.Given the weakened business model, ALGN may become an acquisition target for larger firms.JohnAlexandr/iStock via Getty ImagesI rate Align Technology (NASDAQ:ALGN) as a hold, as the company is showing poor results in the last quarters despite the fact that it was a high-quality business before the COVID-19 scenario. Emerging brands are gettingThis article was written byMario Silva602 FollowersContributor in Yahoo Finance Community. Here, you'll find high-quality articles that will offer information that I would like to find in any article about a stock in which I am interested to invest or if I am already holding it. My approach is to be focused on a fundamental standpoint and "buy & hold" for years. I like to invest, thinking of the very long term and applying the value investing strategies for my own investments and for my family's investments.Given my long-term horizon, I focus on the price and the margin of safety considering risks that are not usually taken into account by other analysts with a shorter time horizon. So, you can follow me if you want to know which stocks I am looking at and to know more and more information related to the value investing philosophy. I hold an MBA from IESE Business School (Barcelona, Spain) and a Master in Finance from Universidad del Pacifico. (Lima, Peru).Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments