Bit of a drop in Fitbit shares (-14%) on foot of a general fall of -45% over the last 12 months.
Surprising because they're really built an extraordinary brand out of nothing. The problem is that their earnings (as a PLC) were coupled with lower than expectations for the future and we've heard that before - but pretty stunning.
They sold a staggering 8.2 million devices in Q4 2015. It seems to be the ideal Christmas gift. 21 million devices sold last year with 1.9 Billion usd in Revenue. In anyone's language that's pretty fit.
It expects Q1 revenues to be 420-440 million usd, below the 484 million expected. Although the notable launch mid March of their new 'Alta' and 'Blaze' brands (excellent as they seem to be) will in our view, be well received but they've had to suffer the costs of development before going to market.
In our view, 'Alta' is a killer product in the wearable market. It actually cracks the problem of bringing fitness products into everyday lifestyles.
So do not despair.
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