Shares of Fitbit (NYSE: FIT) was down 13% after they announced their fourth-quarter results this past week. While the company beat analyst estimates for both revenue and earnings, it issued disappointing guidance.
Wedbush analyst Michael Pachter wrote that the company’s “guidance for continued earnings losses is somewhat disappointing.”
Morgan Stanley analyst Yuuji Anderson reiterated his downbeat view of Fitbit’s prospects, writing that the company’s legacy device business “continues to overshadow new opportunities.” He’s concerned that “difficult demand trends in consumer wearables” will lead to an acceleration in cash burn and hurt Fitbit’s ability to generate earnings power.
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Fitbit was the pioneer in fitness
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