Fitbit stock buy or sell?
After another disappointing earnings report, some investors are wondering: Fitbit stock buy or sell? My Fitbit stock recommendation would be not to buy at this time. The market suggests a sell as well proven by the fact that Fitbit is down over 12% at the time of this writing.
The wearable technology company issued a statement that “We expect our device mix to continue to shift towards smartwatches over the course of the year. We expect to grow Fitbit Health Solutions and increase premium subscribers, but this growth will be relatively immaterial to wearable device revenue.” While these expectations are good, it is not a good sign when a company loses money, as demonstrated by their 2 cents per share loss in the fourth quarter.
Co-founder and CEO James Park also added that “In 2018, we’ll focus on managing down expenses, continuing to expand in the smartwatch category and supporting our engaged global community on their health and fitness journeys.” While normally being a niche product can be a good thing, but having Apple breathing down their neck as competition can be a horrendous endeavor.
They did report a revenue of $571 million. Though, this cannot be considered anything huge by any means. About 4 of their new devices accounted for 36% of their revenue. They also sold around 5.4 million wearable devices.
The market has stated what they think of this company. Hoping for a buyout one of these days would not be a good reason to purchase any stock. They must prove this year that a turnaround is in play with a potential to build on something positive. While the product could be very beneficial, is Fitbit stock buy or sell? My Fitbit stock recommendation would be a no.