Fitbit tries to persuade traders it’s nonetheless alive
Fitbit’s shares aren’t far more than 10% of the highs it reached of $47.60 in July 2015, the month following its public debut. On Wednesday, Fitbit closed $5.07, simply barely a “unicorn” at $1.16 billion in market worth.
However the inventory noticed a uncommon enhance after the corporate reported quarterly earnings, sending shares up over four% in preliminary after hours buying and selling.
The corporate reported $353.three million in income from promoting three.four million gadgets, above the $341.6 million income that analysts anticipated. However that is nonetheless a pointy drop from the $586.5 million in income we noticed in the identical interval final yr. Adjusted losses of eight cents have been a lot smaller than the detrimental 15 cents Wall Avenue was forecasting, however final yr Fitbit posted a revenue at 12 cents.
When main gamers like Apple entered the area, Fitbit tried to ship the message that it was greater than only a health tracker, however a smartwatch as properly. Fitbit launched aggressive merchandise, however Wall Avenue wasn’t satisfied that it was adequate.
Fitbit CEO James Park insists that its subsequent smartwatch would be the huge one. “Our smartwatch, which we consider will ship one of the best well being and health expertise within the class, is on monitor for supply forward of the vacation season and can drive a robust second half of the yr,” he stated in a press release.
Nobody is aware of for positive how Apple Watch gross sales are going for the reason that firm hides it within the “different income” class, however CEO Tim Cook dinner introduced on Tuesday that gross sales are up 50% from final yr.
However one competitor that has not fared properly is Jawbone. Initially seen as Fitbit’s greatest foe, the corporate is now getting liquidated.
Fitbit continues to be alive, however the firm has had a troublesome yr with layoffs and manufacturing issues. The inventory is down 63% for the reason that identical time final yr.