Masimo sees a modest 0.11% rise in its stock price, while trading volume falls by 26.58% and ongoing legal issues persist, placing the company at 404th in market activity rankings.

Market Overview

On March 23, 2026, Masimo (MASI) ended the trading day with a slight increase of 0.11%. Despite this modest gain, trading volume dropped sharply by 26.58% to $310 million, placing the stock at 404th in terms of market activity. The combination of subdued trading and a minor price uptick points to a divided outlook among investors, likely influenced by ongoing legal uncertainties tied to the company’s blood-oxygen monitoring technology patents.

Major Developments

A significant event occurred on March 19, 2026, when the U.S. International Trade Commission (ITC) issued a preliminary decision regarding Masimo. Administrative Law Judge Monica Bhattacharyya determined that Apple’s updated Apple Watch models do not violate Masimo’s patents related to light-based pulse oximetry. This ruling, which was made public on March 19, effectively paused a renewed import ban on Apple’s smartwatches, offering the tech giant temporary legal relief in its ongoing dispute with Masimo. The judge specifically addressed Apple’s “Redesign 2 Watch,” concluding that it neither directly infringes on Masimo’s patents (U.S. Patent Nos. 10,912,502 and 10,945,648) nor encourages infringement when used with an iPhone.

However, since this is only a preliminary finding, uncertainty remains. The full ITC commission must still review and confirm the judge’s decision—a process that could take several months. Until then, Masimo’s legal standing is not fully settled, and the company could face setbacks if the commission overturns the ruling. The debate also continues over whether Apple’s redesign truly avoids infringing the patents, with legal experts divided on the technical aspects of Apple’s workaround.

Adding to the complexity, the U.S. Court of Appeals for the Federal Circuit, on the same day, upheld the ITC’s 2023 decision that Apple’s original, unmodified Watch models did infringe Masimo’s patents. This creates a layered legal scenario: while Apple’s redesigned watches are currently cleared, the finding of infringement for earlier models stands. This dual outcome presents both risks and opportunities for Masimo. Although the preliminary ITC decision protects Apple from immediate import issues, the Federal Circuit’s affirmation strengthens Masimo’s patent claims, potentially allowing the company to seek further legal remedies if future Apple products are found to infringe.

Apple’s actions following the 2023 import ban further complicate the situation. The company disabled the blood-oxygen feature in affected watches before launching a revised model in August 2025, which received approval from U.S. Customs and Border Protection. Masimo has challenged this approach, arguing that it sidesteps the original legal restrictions. While the ITC judge’s recent ruling supports Apple’s redesign, Apple’s ability to adapt its products may weaken Masimo’s negotiating position in future disputes.

For investors, these developments create a complex environment. The ITC’s preliminary ruling may have eased immediate concerns about supply chain disruptions for Apple’s wearables, which could help stabilize the market and indirectly benefit Masimo. Nevertheless, unresolved legal issues and the Federal Circuit’s confirmation of past infringement highlight ongoing risks for Masimo. The stock’s slight gain suggests cautious optimism regarding the impact of Apple’s redesign, but the significant drop in trading volume indicates that many investors remain wary due to the unsettled litigation.

Looking ahead, the outcome of the ITC’s full review will be crucial for Masimo’s future. As a company specializing in pulse oximetry technology, Masimo’s ability to defend its patents against a major competitor like Apple could shape its competitive position and financial prospects. If the ITC upholds the judge’s findings, Masimo may see fewer opportunities for licensing or settlements. Conversely, if the commission reverses the decision, Apple could be pressured to negotiate, potentially improving Masimo’s outlook. The final ITC decision will therefore play a key role in determining the company’s legal strategy and stock performance in the months ahead.