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Ubiquiti Networks, Inc.

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Ubiquiti shares have charted an impressive trajectory in the past six months, outperforming the Zacks categorized Wireless Equipment industry's return over the same time frame. Successful product launches, sustained cost-cutting strategies and impressive performance of the Enterprise Technology segment, have been driving the company’s growth. The company’s competitively priced network and proprietary network communication platform have been driving significant demand for its products.  However, on the negative side, macroeconomic problems like currency risks, rising labor costs in China and natural disasters pose concerns for the company. Also, risks related to intellectual property rights are quite high for the company, particularly in some key markets including South America and China, which may pose as headwinds in the future. Moreover, stringent government legislations add to Ubiquiti’s woes.

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