wall street : Skullcandy is launching more earphones that connect wirelessly via Bluetooth, which are popular
The earbud category accounted for 51% of total headphone sales in 2013, slightly up from 2012, and Skullcandy will launch its earbuds in Wal-Mart Stores WMT +0.24% outlets later this year. In addition, an emerging market for wearable devices such as fitness bands may also drive sales of earbuds. Skullcandy also is launching more earphones that connect wirelessly via Bluetooth, which are popular.
The stock may gain more ground if Skullcandy can show success in those areas. But it will likely remain volatile given fickle trends and a mixed picture on valuation. Friday's surge puts the shares at about 71 times forward earnings. But the stock only trades at about 1.1 times sales, a discount to audio-equipment peers.
After more than a year of miscues, Skullcandy is playing the right tune. Now it not only has to avoid hitting more bad notes but also hope the crowd doesn't move onto a different beat altogether.