Apple's Rival Masimo Tumbles In Quality Despite $634 Million Patent Win Over iPhone-Maker

Despite securing a massive $634 million legal victory against Apple Inc. (NASDAQ:AAPL), Masimo Corp. (NASDAQ:MASI) is flashing warning signals in its underlying fundamentals.

Check out MASI’s stock price here.

Fundamentals Under Pressure

While headlines celebrated the patent infringement verdict, exclusive Benzinga Edge’s Stock Rankings data reveals that Masimo's quality score has tumbled to 10.43, placing it in the bottom tier of stocks for operational efficiency.

According to Benzinga Edge, the quality score is a composite ranking that evaluates operational efficiency and financial health by analyzing historical profitability relative to peers.

Masimo's current score of 10.43 indicates it is underperforming nearly 90% of the market in these key fundamental measures.

This low ranking suggests that despite the one-time cash infusion from the lawsuit, the company's core operational metrics and historical profitability remain weak compared to industry competitors.

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What Do Other Rankings Say?

Beyond the quality metric, Masimo's technicals paint a bearish picture. The stock's momentum score sits at a meager 8.77, indicating weak relative strength and price movement patterns compared to other stocks.

Furthermore, Benzinga Edge data shows the stock is in a downward trend across short, medium, and long timeframes, signaling persistent selling pressure over the last year. Additional performance details are available here.

The Legal Victory

The drop in quality ranking comes at a paradoxical moment. A federal jury in California ordered Apple to pay Masimo $634 million for infringing on blood-oxygen sensor patents used in the Apple Watch in November 2025.

The jury found that Apple’s workout and heart rate features violated Masimo’s intellectual property rights, a decision Masimo called a “significant win” for its innovation efforts.

MASI Underperforms In 2025

Shares of MASI dropped by 22.85% in 2025, outpacing the 20.54% gains in the Nasdaq Composite index during the same period.

Over the last six months, MASI fell by 24.09% and ended the last trading day of 2025 0.77% lower at $130.06 apiece. The stock was unchanged in pre-market on Friday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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