6.70 0.00 (0.00%)
After hours: 5:39PM EST
|Bid||0.00 x 1000|
|Ask||0.00 x 1100|
|Day's Range||6.36 - 6.73|
|52 Week Range||4.23 - 7.79|
|Beta (3Y Monthly)||1.13|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 27, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||6.43|
Fitbit has offered no insight into its medtech opportunity, Pachter said in the Friday downgrade note, adding that Wedbush sees promise in a collaboration with Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG). “Importantly, we think Fitbit has a competitive advantage in health care, in that it is platform agnostic,” the analyst said. “Fitbit works just as well with an Apple OS as with Android and Microsoft, and as an enterprise solution, offering compatibility with any platform is necessary.
Fitbit's (NASDAQ:FIT) upcoming fourth-quarter results are likely to show that its recent, positive trends are accelerating. As a result, Fitbit stock will probably rise meaningfully in the wake of the report. * 9 High-Growth Stocks to Buy Now for Monster Returns Source: Shutterstock Of course, Q4 earnings per share will be a crucial metric for Fitbit and Fitbit stock, especially because the holiday shopping season, which is very important for the company's overall results, occurred last quarter.In Q3, the company's bottom line was positive for the first time in many quarters. Assuming that the company's Versa smartwatch and its Charge 3 fitness tracker continued to be popular with consumers in Q4, Fitbit's EPS should increase meaningfully above the 4 cents that it reported in Q3.InvestorPlace - Stock Market News, Stock Advice & Trading TipsResearch firm Roth Capital believes that the company's products were indeed popular with holiday shoppers. On Jan. 3, the research firm told its clients that FIT "likely had strong holiday sales that will lead to a 'solid' Q4 report," Seeking Alpha reported. Among the evidence cited by Roth for its hypothesis were "internal checks, top seller lists, app downloads, and limited discounting." The firm reiterated its $8 price target and its "buy" rating on the stock.In the past, Roth has been upbeat about Fitbit's ability to generate "tens of millions of dollars in recurring sales" from companies and health insurers that want to use Fitbit's products to improve the health of their employees and beneficiaries, respectively. Long-Term, Positive Trends Likely to Lift FIT StockThe revenue generated by Fitbit Health Solutions, the company's business that focuses on selling devices and services to enterprises, jumped 26% year over year in Q3. However, FIT noted that the unit accounted for less than 10% of its Q3 revenue. As more health insurers, hospitals and companies use FIT's devices to help combat obesity and detect health problems such as atrial fibrillation and sleep apnea, the unit's revenue growth should accelerate meaningfully and account for a much greater percentage of FIT's overall revenue.And as Fitbit Health Solutions' trends improve, investors will become more confident in the company's ability to grow its recurring revenue and improve its overall results going forward. As a result, the acceleration of Fitbit Health Solutions will prove to be a powerful, positive catalyst for FIT stock.If the growth of the unit's revenue accelerated meaningfully and it generated more than 10% of the company's revenue last quarter, more investors will look to buy FIT stock in the wake of the results, boosting Fitbit stock. Gartner, Google, And FitbitIn another positive note for Fitbit, research firm Gartner in November predicted that consumer spending on smartwatches would reach $16.2 billion. According to Counterpoint Research, Fitbit had a 16% share of the smartwatch market in the third quarter of 2018. up from just 6% during the same period a year earlier.If FIT's market share rises to 20% this year, and we assume that Gartner's forecast is correct, then Fitbit's revenue will jump to $3.2 billion in 2019, That would mean the current price-to-sales ratio of FIT stock is about 0.5. Backing out Fitbit's cash would lower the ratio to less than 0.33. That's quite minuscule for a company that's gaining share in a growing sector and appears to be on the verge of profitability.After Google (NASDAQ:GOOG, NASDAQ:GOOGL) agreed to buy smartwatch technology from Fossil (NASDAQ:FOSL) in mid-January, speculation arose that Google was looking to improve its own smartwatch operating system and launch its own Pixel watch.However, given Google's partnership with Fitbit, the search-engine giant may have made the deal with Fossil to enhance products the two companies are developing together. As a result, Google's deal with Fossil could actually be bullish for Fitbit stock. * 10 Monthly Dividend Stocks to Buy to Pay the Bills The Bottom Line on Fitbit StockFitbit looks poised to report meaningful Q4 profits -- and its relatively strong bottom line should boost Fitbit stock in the wake of the results. Also likely to boost FIT stock are the growth of Fitbit's sales to enterprises and the evolution of its partnership with Google, along with the expansion of the smartwatch market.As of this writing, Larry Ramer owned shares of FIT stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Consumer Stocks to Buy for Income * 7 Dark Horse Stocks You Really Need to Look at for 2019 * 7 Retail Stocks to Buy for the Rise of Menswear Compare Brokers The post Fitbit Stock Likely to Rise After Fourth-Quarter Results appeared first on InvestorPlace.
Fitbit's (FIT) focus on innovation, including new smartwatches, are likely to benefit fourth-quarter results. However, intensifying competition in the wearables market remains a major concern.
Shares of Fitbit Inc. are down 1.2% in premarket trading Friday after Wedbush analyst Michael Pachter downgraded the stock to neutral from outperform given what he views as a lack of information provided by management about the opportunities in the larger health system. "It is not yet clear how much Fitbit Care and related initiatives are contributing to Fitbit's revenue and profitability, and we anticipate guidance for FY19 to include modest revenue and earnings growth without providing any detail on healthcare," he wrote. He expects that the company will host an analyst day in the coming months and be more forthcoming then. "We think what is currently known about the medical-technology opportunity is fully priced into Fitbit's share price," Pachter wrote. "Until we know more, we will step to the sidelines." Pachter kept his $6.50 target price intact. Fitbit's stock has risen 24% over the past three months, as the S&P 500 has gained 4.7%.
So far, 2019 is shaping up to be a critical year for Samsung. With its Galaxy flagship series marking the tenth anniversary, the South Korean consumer electronics giant is running smack into the same slowing smartphone market that hit Apple (NASDAQ:AAPL) iPhone sales. Source: Samsung At the same time, it's facing unprecedented competition from premium Android smartphone makers. China's Huawei has already overtaken Apple as the world's number one seller of smartphones, and it's gunning for Samsung, with plans to become number one globally by 2020.On Wednesday, Samsung held its first Unpacked event of 2019, unveiling some of its most important products for the year -- including the Galaxy S10 and its futuristic Galaxy Fold smartphone with a folding display. Here's everything you need to know about Samsung's Unpacked 2019.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Galaxy S10With the Galaxy S10, Samsung is aiming to make smartphones with notches -- like everything Apple now makes -- look obsolete. And it's not just by keeping the smartphone jack …Source: Samsung The 6.1-inch Galaxy S10 features a so-called hole punch front camera design. No notch, its Infinity O-Display AMOLED screen encircles a cutout for the camera. * 7 Healthy Dividend Stocks to Buy for Extra Stability The company is also escalating the primary camera race by moving from the dual-camera setup found on most flagships today, to a three camera setup: standard, wide-angle and telephoto lenses, all made better with neural processing AI smarts and built-in Instagram mode.Another big change? The rear fingerprint reader is gone, replaced by an advanced, ultrasonic fingerprint scanner that's embedded beneath the screen -- a first. Unlocking the smartphone means simply touching the display. But the back of this smartphone will gain another ability -- wireless charging of accessories, such as the Galaxy Bud wireless earbuds (more on those shortly). Speaking of charging, it has a 3,400mAh battery. In another first, the Galaxy S10 is the first smartphone to support the new Wi-Fi 6 standard.Processing power is provided by a Qualcomm (NASDAQ:COM) Snapdragon 855 processor, which should mean a performance bump compared to last year's Galaxy S9. As you might expect, it will ship with Android 9 pie.Pricing starts at $899.99 (for 128GB of storage). Galaxy S10 smartphones are available for pre-order starting Feb. 21. Galaxy S10+As has become the custom, Samsung is offering a super-sized version of its flagship smartphone. The Galaxy S10+ has a 6.4-inch Infinity O-Display AMOLED screen and a higher capacity 4,100mAh battery that delivers 25% more battery life than the Galaxy S9+ did.Source: Samsung Expect to pay a $100 premium ($999.99) for the extra screen real estate, larger battery, a dual front camera (for more advanced portraits), and the option of a white or black ceramic back. You can also order up to 1TB of storage and up to 12GB of RAM -- laptop like specs … Galaxy S10EEveryone expects to see a giant-sized version of a company's flagship smartphone. But what the heck is the Galaxy S10E?Source: Samsung This is Samsung's equivalent of the iPhone XR. It's a premium smartphone with many of the features of the Galaxy S10, but it skips some of the goodies like triple cameras and in-glass fingerprint reader to offer a more affordable price tag.Instead, it has a dual-camera setup and a side button fingerprint reader. Its 5.8-inch display also makes it smaller and easier to hold than the other Galaxy S10 options.The Galaxy S10E is priced from $749.99 and it is available for pre-order starting February 21. Galaxy S10 5GAs if three variants weren't enough, Samsung also showed off a fourth Galaxy S10: the S10 5G.Source: Samsung As its name suggests, this version includes support for next-generation 5G cellular networks. It also gets the biggest screen and biggest battery ever on a Galaxy device: a 6.7-inch display and a 4,500mAh battery. It also gets a third selfie camera for advanced AR functionality.Timing and pricing have not been announced, but Samsung says the Galaxy S10 5G will be a Verizon (NYSE:VZ) exclusive at launch. Galaxy FoldHow do you pique consumer interest in smartphones, when flagship devices are now powerful enough to serve perfectly well for three or four years? Samsung thinks it has the answer in the Galaxy Fold. This premium device is built around Samsung's 7.3-inch Infinity Flex folding display. Folded, it has a 4.6-inch front display, making it a compact smartphone; unfolded, it becomes a small tablet.Source: Samsung Specs are high end with a 7nm processor, 12 GB of RAM, 512GB of storage, six cameras and dual batteries. Microsoft (NASDAQ:MSFT) will even release custom Office app versions that take full advantage of its capabilities but Samsung says "app continuity" will make transitioning between phone and tablet mode seamless.Buyers for the Galaxy Fold will need to be both deep-pocketed and patient. Samsung says the "luxury" folding smartphone will be available in four colors. Retail pricing starts at $ 1,980.00 and the Galaxy Fold will be available starting April 26. Galaxy BudsApple AirPods became the top-selling wireless earbuds of 2018 and the company is expected to release a second generation in 2019. Samsung is looking to steal some of Apple's thunder - and scoop up some of those accessory dollars -- with its own version: the Galaxy Buds.Source: Samsung These get Bluetooth 5 connectivity and 8GB of onboard storage -- unlike the AirPods, a smartphone or smartwatch will not be needed to listen to music.Also unlike the AirPods (which come in white or white), Galaxy Bud buyers will be able to choose between black, white and yellow. Battery life its rated at up to six hours of music playback, and they feature integrated Bixby voice support.Samsung says the Galaxy Buds will be available starting March 8, but pricing was not announced. Galaxy Watch ActiveSamsung is also chasing Apple when it comes to smartwatch sales -- although Samsung has been more successful (and more persistent) than most. Samsung also uses its own Tizen operating system rather than Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) Google division's Wear OS.Source: Samsung Today the company unveiled the new Galaxy Watch Active. This minimalist smartwatch features a round face, a heart rate sensor, blood pressure monitoring (something the Apple Watch can't yet do), and stress tracking.It's not just health-focused, but it also offers fitness capabilities with auto detection and tracking of six different activities including running and biking. Bixby voice control can be used to send messages or make calls.The Galaxy Watch Active is available in Black, Sea Green, Silver and Rose Gold. Prices start at $199.99 and it will be available starting March 8. Galaxy FitNot content with tweaking Apple, Samsung is also continuing to push at Fitbit's (NYSE:FIT) fitness tracker sales.Source: Samsung The new Galaxy Fit is a lightweight fitness tracker with a color AMOLED display, rubber strap, week-long battery life and both heart and sleep tracking. It can also receive smartphone alerts.Like the Galaxy Watch Active, it is waterproof and can be worn while swimming. The Galaxy Fit arrives later this spring for $99, along with the Fit e --a lower price option that skips the color display-- is expected to go for less than half that price. Look out Fitbit… Samsung Experience StoresSamsung is also aiming to follow a trail blazed by Apple in an effort to sell all these new devices directly to consumers.The company is set to open three physical retail stores, in New York, Los Angeles and Houston. These "Samsung Experience" stores will let consumers see the latest 8K TVs while getting hands-on with new Galaxy S10 smartphones and other devices.The stores will also reportedly offer walk-in repair services for Samsung products. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now * 7 Restaurant Stocks to Watch in 2019 Compare Brokers The post Samsung Takes the Wraps Off Galaxy S10, Galaxy Fold and More appeared first on InvestorPlace.
After a mercurial debut, the dreaded "C-word" took down fitness-tracking device maker Fitbit (NYSE:FIT) in the most ignominious manner. I'm talking of course about commoditization that has plague FIT stock. As fierce competition from Garmin (NASDAQ:GRMN), Apple (NASDAQ:AAPL), even Fossil Group (NASDAQ:FOSL) came, Fitbit stock crumbled under the pressure.Source: Denis Kortunov via Flickr (Modified)And let's just be real, folks: commoditization represents the core reason why many investors remain skeptical on FIT stock despite its newfound bullishness. On the surface, a Fitbit tracker offers nothing that other competitors can't replicate. Therefore, the only distinguishing factor is the price point.Here, I've argued that FIT offers better pricing options on absolute and relative scales. For athletes, especially those in extreme sports, the idea of risking a pricey Apple Watch is itself extreme. More importantly, those who need fitness trackers from a health standpoint are typically modest income earners.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Smart Money Stocks to Buy Now Naturally, this dynamic favors Fitbit stock. However, our own Vince Martin recently pointed out that over the trailing year, FIT has lost its "pricing edge." When that happens, we typically see the ugly work behind commoditization.I'm not fear-mongering. Both Martin and I have brought up commoditization as a significant headwind that hurt Apple shares. Essentially, when you have no new ideas, you can' continue to charge premiums on your products. Competitors move in, and entice customers to make the switch through attractive pricing.Plus, Martin adds a specific argument against FIT stock: the underlying company features stretched financials. Sure, they have a stable balance sheet. But in terms of capturing additional earnings growth, they remain deeply challenged. Since Fitbit can't cut more fat than they already have, they must boost sales by a massive amount.Under such a pressured environment, you should probably walk away from Fitbit stock. Or maybe not… The Compelling Narrative Driving Fitbit StockBefore I get into the contrarian argument for FIT stock, you should recognize the red flags. Shares gyrated all over the map last year. Fundamentally, the consumer tech firm must overcome an uphill battle. Every indicator suggests you run, and I don't blame you if that's you.That said, my proposal is that it's not entirely irrational to buy Fitbit stock. Of course, it's a risky, speculative play, and you could end up burning your portfolio. At the same time, you have the possibility of huge gains, if only that the masses don't see the opportunity.It all comes down to branding. First, Fitbit stock, unlike the competition, represents a pure, fitness and health-oriented company. As such, the company features over 25 million active users. More importantly, these are users dedicated to fitness.That sounds like an obvious point. But as InvestorPlace contributor Chris Lau notes, Fitbit leverages this singular expertise into a massive data set.Why is this important? If you truly want to attain better health metrics, a superior data set helps streamline your efforts. That way, you're not wasting your time performing ineffective exercises.Second, this distinct focus towards all things health-related helps Fitbit stock overcome the commoditization label. Martin correctly that the tech firm's partnerships with health insurers and corporations is vulnerable to competition. However, I'd gently counter that Fitbit has that relationship on lockdown.While FIT has lost its pricing edge, it still offers superior pricing options. For example, I highly doubt that a big-box retailer would offer its employees Apple Watches.Furthermore, if the above parties were truly interested in worker health, they'd go with the most effective product. Plugged into the Fitbit network, you receive an array of vital tips, information, and metrics that you don't have with competitor brands. FIT Stock and Missed OpportunitiesTranslating the Fitbit brand's superiority to the mainstream public, though, remains a tough endeavor. After all, to recognize the data advantages, a consumer must look beyond the superficialities.But with the company's fresh approach to female health tracking, FIT stock can capture a missed opportunity. For one thing, the move is marketing brilliance. Biologically, women and men are built differently.By openly recognizing that women have unique health considerations, Fitbit taps into a tech void, separating itself from its rivals.Additionally, those rivals will find tremendous difficulty challenging Fitbit stock in this arena. Again, the underlying company has the superior data set. They can commoditize all they want: astute women will recognize Fitbit's core attributes once its first-to-market advantage wears off.Another missed opportunity is the modest-income category which I referenced earlier. Priced for mass appeal, the latest Fitbit Versa smartwatch outsold the competition. With this move, FIT proved it can make cheap and compelling products.More significantly, scientific research indicates a correlation between low income and obesity risks. While companies like Apple specialize in higher-end devices, the real need for fitness-oriented devices are those with smaller paychecks.Essentially, FIT is hitting passing lanes where defensive pressure is sparse. That kind of smart thinking might just boost Fitbit stock this year.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best Cheap Stocks to Buy Right Now * 5 Stocks Under $5 to Buy Before They Soar * 5 Consumer Stocks to Cash Out Of Compare Brokers The post The Speculative, But Compelling, Reason to Bet on FIT Stock appeared first on InvestorPlace.
Fitbit (FIT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Home Connect, a dynamic ecosystem created to connect home appliances to the Internet of Things, kicks off its presence at the 2019 International Builders Show (IBS) by announcing its integration with leading global wearables brand Fitbit (FIT). The first Home Connect wearables integration provides consumers the convenience and delight of controlling their home appliances on-the-go right from their wrist and enhances Home Connect’s growing lineup of partners and products. “With Fitbit, we can help consumers unlock the potential of their connected home appliances from the smartwatch they’re already wearing — which fits perfectly with today’s busy consumer who wants to get the most out of their day,” said Patrick Palacio, director of business development and innovations for Home Connect.
Yandex's (YNDX) accelerating advertisement revenues and strong position in Russian search market benefit fourth-quarter results. However, deconsolidation effect of Yandex.Market remains an overhang.
The Latest Trends in Tech: Amazon, Google, Cisco, Apple, and Dish(Continued from Prior Part)Smartwatches have been a shining light in the wearables spaceThe wearables (WEAR) space has seen seeing lackluster growth for the last couple of years.
A little more than two months ago, headed into the heart of the holiday shopping season, I cautioned investors that Fitbit (NYSE:FIT) was facing a now or never situation. If FIT stock was ever going to make sustained gains again, the company had to prove its mettle during the fourth quarter of 2018.Little that happened the rest of that month convinced me to change my mind.A key crux of the challenge was, and still is, Fitbit's penchant for aiming at the tough, mid-priced sliver of the smartwatch market, and to some degree the mid-priced fitness tracker market.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? Like most consumer tech, buyers want great value, or lifestyle/aspirational brands like Apple (NASDAQ:AAPL). Working in the middle of the pricing spectrum is tough.Just a few days later, discounting, in some cases, deep discounting, of Fitbit products confirmed my suspicion.If my viewpoint was off-base, we'll know soon enough. Fitbit releases its quarterly numbers on Feb. 25. Just as a suggestion though, fans and owners of FIT stock may want to keep their expectations in check headed into that report. Deep DiscountingJust as a refresher, my chief concern voiced back in December:"… the fact that consumers are still willing to shell out a minimum of $279 for an Apple watch says the right device can still command a premium price. At the other end of the spectrum are sub-$100 smartwatches. They're clearly no Apple device, but they're stunningly cheap and deemed high-tech enough to satisfy the cost-conscious. That leaves Fitbit's Versa in a difficult positions. Priced at $199 apiece, it neither carries the premium Apple name, nor is it the most affordable option for consumers that don't care about labels."Those consumers, it seems, broadly agreed there's not a great deal of demand for a mid-priced option. Less than two weeks later, the Versa's regular retail price of $200 had been lowered to $149 by Amazon. Walmart followed suit a day later.By Dec. 20, some retailers had knocked the price of the Versa down to $90.Even select versions of the Apple SmartWatch saw price cuts a few days in front of Christmas. Its Series 3 device was pared back from a regular price of $309 to $259, and the smaller version of the Series 3, normally priced at $279, could be bought for $229 in mid-December.It's telling, though not necessarily damning. Price competition always ramps up as Christmas approaches.Nevertheless, it's a dynamic that bodes poorly for Fitbit, and by extension, for the value of Fitbit stock. For a few dollars more, consumers could join the much more robust Apple ecosystem of smartwatch apps. For a few bucks less, they could buy an even cheaper, sub-$100 smartwatch from Xiaomi (OTCMKTS:XIACF) that was almost as functional.It should be noted that the price breaks were only temporary, and not necessarily realized by Fitbit for the full quarter.Retailers generally buy inventory outright, paying wholesale prices upfront. Any discounting is ultimately absorbed by the consumer-facing seller.If a retailer finds it's tough to market wares at a profitable price though, direct and indirect pushback ensues. It can (and does) impact subsequent orders. It also forces the manufacturers to lower prices on goods they sell directly to consumers.Both can ultimately lead to crimped margins, which were already shrinking for Fitbit headed into the holiday. The company's third quarter gross margins fell from 45.2% to 40.1% following then-recent launches of the Versa smartwatch and its Charge 3 fitness tracker. It doesn't appear the Versa held onto much pricing power when it needed it most.And yet, even if Fitbit surprises investors, there's still a chance Fitbit stock could be up-ended a few days later. Watch for IDC's Q4 Smartwatch ReportDiscounting isn't the only red flag waving as Fitbit's earnings report nears.Fitbit was the only major smartwatch maker to lose market share during the third quarter of last year. Samsung Electronics (OTCMKTS:SSNLF), Xiaomi and Apple all gained at Fitbit's expense, and though the setback was minimal, it shouldn't have taken shape at all.The Q4 smartwatch market share update from IDC won't likely be posted until early March, well after Fitbit posts its fourth quarter numbers. Nevertheless, it's a report with the potential to move Fitbit stock higher or lower, depending in the interpretation of the data.Given that traders value stocks on a relative as well as an absolute basis, it's certainly conceivable that poor market share numbers -- again -- could work against FIT stock even of the post-earnings response is a bullish one.Somehow though, an encouraging indication for the Fitbit brand from that IDC report isn't apt to unwind a bearish response to the company's news slated for Feb 25. Fitbit has become a "show me" story for many investors. Bottom Line for FIT StockWhile Fitbit is a "show me" name for the time being, it has to be acknowledged the company may have finally found its niche by working with large-scale employers that offer health insurance to its workers.It's called the Inspire, but you won't find it on store shelves. Rather, you'll only get your hands on this particular fitness tracker if your employer wants you to have one, ultimately for the purpose of lowering their tab on offering health benefits.The device is intended to identify health problems early on, and treat them before they become expensive to manage.It's a savvy use of the company's tech, and its brand name.Even so, the institutional market is even less predictable than the consumer market, with sales cycles measured in months rather than weeks. It remains unclear when, or even if, that program will make a dent in sales. It almost certainly won't make a dent in margins, as bulk buyers tend to insist in steep price breaks.However that effort pans out, rough results in the meantime could readily rock FIT stock, and unwind most if not all of the 40% gain claimed from December's lows.Tread lightly here.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 U.S. Stocks That Are Coming to Life Again * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 5 Tips to Become a Better Stock Trader Compare Brokers The post Keep FIT Stock Expectations in Check Ahead of the Q4 Report appeared first on InvestorPlace.
Audio tech maker Sonos, Inc. (NASDAQ:SONO) is having a hard time reversing the strong downtrend in its stock price. And if the CFO retirement and the second-quarter warning weigh any more on its stock, its market capitalization may fall below the $1 billion level. Despite the premium speaker supplier differentiating itself from other brands, cheaper smart speakers from Alphabet (NASDAQ:GOOGL) or Amazon.com (NASDAQ:AMZN) might prolong the glut of Sonos speakers on the market. Investors are looking for bullish reasons to hold SONO stock?Sonos continues to develop consumer interest in its brand. First quarter results showed it can drive sustainable, profitable growth. Revenue grew 6% over last year to $496 million while EBITDA came in at $87 million, up 34%. It now has eight million homes using the speaker product. Each share of SONO stock earned 55 cents diluted, up from 26 cents last year.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe balance sheet is healthy because the firm ended the quarter with $307.4 million in cash, compared to $31.4 billion in long-term debt. * Buy These 5 Stocks to Play the Megatrend of the Century New product launches helped drive revenue in the period. It recently launched Sonos Beam, lifting home theater revenue by 42% Y/Y. With that strong initial pace, investors should expect this segment of the market lifting overall results for the full year. Unfortunately, European consumers haven't yet embraced voice assistant products, with the smart speaker still in its infancy but management it's only a matter of time. Sonos also restrained itself from spending more on sales and marketing. But with a bigger ad budget for the region, Q2 results may not come in as weak as management guided. Disappointing ForecastsA reduced sell-through in Q1 raised Sonos' channel inventory enough to cause management to warn on Q2 results. A delayed production schedule with IKEA, pushed into Q3 instead of Q2, is putting pressure on EBITDA growth for the full year. Sonos forecasts revenue growing 10-12% and in the range of $1.25 billion-$1.275 billion. Adjusted EBITDA growth will be in the range of 20-27%.Investors turned sour on SONO stock because the seasonal Q1 strength, helped by the holiday period, follows with a typically slower period. Then, add in the uncertainties for European customers not yet ready to buy a Sonos product, the retirement of CFO Michael Giannetto, and the revised IKEA product launch. It might seem as if these issues appear temporary but management did not rule out a slowdown in some channels in the U.S. continuing into the current second quarter. New Product IntrosIn addition to the new products introduced last quarter, Sonos could add more speakers and headphones to its product catalog to drive slowing sales. Management has a less risky plan. On the quarterly conference call, they said it could apply its expertise in wireless by further developing cloud connectivity and services. If it were to enter new markets like earphones, it would have to bring some feature that differentiated SONO from the competition. * 10 Best Dividend Stocks to Buy for the Next 10 Months Shareholders should welcome this approach. Too often, companies run with new product introductions only to end up with higher costs and with products that are low margin because they do not add anything new to the mix. Fitbit (NYSE:FIT) and GoPro (NASDAQ:GPRO) are just two examples. Fitbit is now competing with smartwatches while GoPro's video camera competes with the smartphone video capture and video cameras themselves. Valuation on SONO Stock is ToughThere's thin coverage on Wall Street on Sonos stock. The four analysts watching SONO have a $16.50 average price target (links to Tipranks), implying more than 50% upside. Realistically, arriving at a fair value on Sonos' value is tricky because the company has not been a public company for very long. Its revenue potential is difficult to forecast because the company is still in a growth phase.Newly listed stocks are inherently risky and Sonos is no exception. If you try out its product you will know how much better the sound quality is over competitors. Plus, the company does not overcharge for its product. As an investment, though, Sonos stock is still a "show me" play. Fortunately, management is not panicking over the near-term inventory issues and slowing demand. It has the right attitude of delivering a superior product that stands out over the competition. And it is embracing home assistance on the speaker and a quality sound experience. That is a winning attitude that could pay off for Sonos investors.Disclosure: As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 U.S. Stocks That Are Coming to Life Again * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 5 Tips to Become a Better Stock Trader Compare Brokers The post Why Buying Sonos After the Dip Is Not a Leap of Faith By Any Measure appeared first on InvestorPlace.
Trimble's (TRMB) new division poises it as an established global provider of routing, scheduling, visualization and navigation solutions for commercial use.
Fitbit , the leading global wearables brand, today announced that it expects to release results for its fourth quarter and full year 2018 on Wednesday, February 27, after market close.
I understand the attraction of Fitbit (NYSE:FIT) stock. Cash on the balance sheet accounts for almost half the market capitalization of Fitbit stock. And FIT stock, at least on a price-to-revenue basis, is cheap.Source: Shutterstock At the same time, however, I've been a longtime skeptic regarding FIT, and even as Fitbit stock has rallied sharply in 2019 - gaining 30% YTD - that opinion hasn't changed. FIT stock is intriguing from a distance. Looking closer, there are plenty of reasons for caution. Here are three of those reasons that suggest investors should consider taking profits, particularly ahead of Q4 earnings that should arrive later this month. * Buy These 5 Stocks to Play the Megatrend of the Century Reason 1: We've Been Here Before with FIT StockFIT stock now has gained 52% from late October's all-time lows. It's been a great rally for investors who were able to time it properly.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut it's not a rally that suggests something has fundamentally changed with Fitbit stock. Over the past two-plus years, as FIT has remained dead money, rallies have come and gone. Starting in August 2017, FIT climbed from $5 to $7. The gains evaporated in less than six months.It jumped again in May, from under $5 to over $7 in June. By late October, the stock as noted was at an all-time low.Fitbit did post a solid earnings beat in late October, which catalyzed a rally before broad market fears wiped it out. But a 'beat' relative to expectations is not the same as real progress. And the fact remains that Fitbit's story hasn't changed materially, while the stock price has. Reason 2: Fitbit Stock Isn't 'Cheap'With cash on the books over $600 million, Fitbit has an enterprise value under $1 billion. Against 2018 revenue guidance of "approximately" $1.5 billion, that suggests an EV/sales multiple of about 0.6x.That seems cheap. The valuation actually sits modestly below that of fellow hardware play GoPro (NASDAQ:GPRO), who continues to struggle. It's a noted discount to rival Garmin (NASDAQ:GRMN), which trades at almost 4x revenue. Consumer electronics manufacturer Logitech (NASDAQ:LOGI) is at 2x. Move FIT's multiple to even 1x sales, bulls argue, and the stock climbs above $8.But there's a catch here. Fitbit isn't profitable. In fact, it isn't really close. Adjusted EBITDA this year is likely to be in the range of negative $50 million (excluding another $100 million in share-based compensation) based on guidance. Free cash flow is guided to negative $20 million. And Fitbit revenue still is guided to decline this year while in the supposedly strong Q3, revenue rose just 0.3%.A declining, unprofitable business simply can't be called cheap. A turnaround? Sure. But as I detailed last month, Fitbit probably has to grow revenue in the order of 50% simply to become profitable when accounting for the dilution of Fitbit shareholders. The math here, in terms of profitability, still doesn't work. Fitbit is going to need a blowout Q4 and a huge 2019 to even get close to changing that. Reason 3: Competition Isn't Going AnywhereAnd it's tough to grow revenue without market leadership. Fitbit no longer is the market leader; that crown belongs to Apple (NASDAQ:AAPL). And Apple Watch sales, unlike those of Fitbit, are growing, per both SEC filings and management commentary. Garmin is having success as well.Again, there's a case for a turnaround from Fitbit. But even better products suggest a tough road to hoe when it comes to gaining market share. Low-end wearables are going to be commoditized; challenging Apple on the high end of any product is always difficult.The numbers say Fitbit has to grow. The competitive environment suggests that will be difficult. That's a tough combination. But with expectations clearly rising heading into earnings, investors seem to believe that's the path Fitbit is on.Perhaps. Perhaps this time is different. But history and even recent results suggest otherwise. Fitbit does have a fortress balance sheet, and plenty of time to execute its turnaround.That's been the case for two years, however, and FIT stock has provided minimal returns for investors who held over that period. With the stock up 30% already this year, investors looking for more very well could be disappointed.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Every 20-Year-Old Should Buy * 10 Best Dividend Stocks to Buy for the Next 10 Months * 10 Monster Growth Stocks to Buy for 2019 and Beyond Compare Brokers The post 3 Reasons to Sell Fitbit Stock Ahead of This Month's Earnings appeared first on InvestorPlace.
Shares of Fitbit (NASDAQ:FIT) are off to a red-hot start in the New Year, with Fitbit stock up more than 35% year-to-date, and we aren't even halfway through February. The big rally can be attributed to a growing feeling on Wall Street that Fitbit's new Versa smartwatch led the wearables company to a strong holiday period. As such, investors have been bidding up Fitbit stock in anticipation of strong fourth-quarter numbers.But, Fitbit stock has come too far, too fast, and is due for a pullback soon.To be sure, Q4 numbers should be really good. There's an increasing amount of data which suggests that Fitbit did have a strong holiday period, led by strong smartwatch sales. That further supports the long-term bull thesis that the worst is over for this company.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best Dividend Stocks to Buy for the Next 10 Months But, optimism regarding that long-term bull thesis is already fully priced into Fitbit stock. At nearly $7, near- to medium-term upside looks fundamentally limited. But the risk for downside is quite large, both from a technical and fundamental perspective.As such, Fitbit stock is best avoided here. The next big move in the stock will likely be lower. Strong Holiday Numbers In StoreThe 30%+ year-to-date rally in Fitbit stock can be attributed to bullish sentiment regarding Fitbit's holiday period.That bullish sentiment is warranted. According to Google Trends, it does appear that both domestic and global search interest related to the Fitbit brand bounced back this holiday season, after several years of fading interest. Also, it appears this strength was driven by interest in Fitbit's newest smartwatch, Versa. Web-traffic trends are likewise favorable. Also, on Walmart (NYSE:WMT), Target (NYSE:TGT), Amazon (NASDAQ:AMZN), and Best Buy's (NASDAQ:BBY) online bestselling smartwatches lists, Fitbit holds its own against industry heavyweights like Apple (NASDAQ:AAPL), Fossil (NASDAQ:FOSL), and Samsung.In other words, it does seem like Fitbit had a really good holiday period, led by robust smartwatch strength.That's a big deal. The whole Fitbit turnaround is predicated on this company pivoting from dying basic activity tracker company, to growing smartwatch company. This turnaround appears to have taken hold in late 2018. As such, the worst does appear to be in the rearview mirror. From here forward, revenue growth should return to positive territory, gross margins should stabilize, and the opex rate should fall. All together, profitability looks likely within the next several years.Overall, it looks like Fitbit had a really strong holiday quarter, and that gives firepower to the bull thesis that things will only get better from here. Theoretically, that thesis should drive Fitbit stock higher. But, it already has, and further upside looks limited, even if the bull thesis plays out as planned. Good News Is Priced InAs always, things come back to valuation. With respect to Fitbit stock, the valuation simply does not make sense with the stock price around closing in on $7.Long-term fundamentals don't support Fitbit stock at those levels just yet. In a best-case scenario, revenues bottom at $1.5 billion this year, and proceed to grow by ~10% per year over the subsequent five years due to smartwatch growth and data partnerships. Also in a best case scenario, gross margins stabilize around 40%, and operating expenses stay around $800 million even amid increasing revenues.All together, that leads me to believe that a best-case outcome for Fitbit is $0.50 in EPS by fiscal 2023. Based on competitor Garmin's (NYSE:GRMN) average forward P/E multiple of 18, that equates that a fiscal 2022 price target for Fitbit stock of $9. Discounted back by 10% per year, that equates to a fiscal 2019 price target of just under $7.That's where Fitbit stock trades today. As such, fundamentals imply zero upside into the end of 2019.Also, the technicals look stretched here. Fitbit stock is up 45% since Christmas Eve 2018. That huge rally has pushed the stock's Relative Strength Index into overbought territory. It has also pushed the stock nearly 20% above its 50-day moving average. Meanwhile, if you look at the stock chart over the past year, this rally looks more like a cyclical upturn before a cyclical downturn, than a breakout in the stock. * 7 Breakout Stocks In Early 2019 Bottom Line on FIT StockThe underlying narrative and fundamentals supporting Fitbit stock are improving thanks to a successful smartwatch pivot. But, those improvements are more than fully priced in at current levels and with the stock up more than 30% year-to-date. Consequently, the next big move in Fitbit stock will likely be lower.As of this writing, Luke Lango was long TGT, AMZN, BBY, AAPL, and FOSL. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Fundamentally Sound Dividend Stocks to Buy * 5 Reasons Reeling FAANG Stocks Won't Deliver Big Returns * 3 Reasons Canopy Growth Could Burn You Compare Brokers The post Why the Rally in Fitbit Stock May Be on Its Last Legs appeared first on InvestorPlace.
Volatility has slowed considerably, with the S&P 500 closing up or down at least 1% on just six trading days so far this year, which is in stark contrast to 28 such occurrences in 63 trading days in the fourth quarter. The only really big days so far were Jan. 3 (down 2.5%) and Jan. 4 (up 3.4%), which looked like the continuation of a crazy fourth quarter, but it has been fairly quiet since then. Smaller names continue their recovery, albeit at a slower pace, from an awful fourth quarter that saw the Russell 2000 Index down 20%, and the Russell Microcap Index down 22%.
On Friday, Fitbit (NYSE:FIT) quietly released what is expected to be one of the most important products in its lineup. The Fitbit Inspire is a basic activity tracker bracelet (also available as a clip), and the company's cheapest device. But you can't buy one. The new Fitbit Inspire is available only to employees of companies that sign up for a plan with Fitbit Health Solutions. With Fitbit and rival Apple (NASDAQ:AAPL) fighting to get corporate clients to subsidize their health and fitness trackers, the Inspire is the most important product for Fitbit stock since the release of the Versa smartwatch. Fitbit Inspire The new Fitbit Ionic is nothing like the products the company has released recently. It's a basic fitness and activity tracker. It can count steps, track sleep, show calories burned and remind wearers to get up and move. Step up to the Inspire HR, and heart rate tracking and GPS are added. This is a basic, plastic device with a silicone band, also offered as a clip-on. No fancy color display, no premium metal enclosure, and no designer bands. The closest it comes to anything resembling smartwatch functionality is the ability to display smartphone notifications.The approach is similar to one of the cheap Xiaomi fitness trackers that has been eating the low end of the market for the past several years. Fitbit confirmed to CNBC that the Inspire is its least expensive device yet. The company didn't give the actual price, but since it currently sells the Zip tracker for $59.95, that means the Inspire would go for under $60.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Monster Growth Stocks to Buy for 2019 and Beyond But the Fitbit Inspire won't be sold to the public. On its product page, Fitbit describes who can get one of these new fitness trackers:"These special release trackers are available exclusively through Fitbit corporate, wellness, health plan, and health systems partners and customers of their organizations, participants, and members." Targeting the Insurance and Corporate MarketsIt was the release of its own smartwatch -- the Versa -- that's credited with helping to arrest the free fall that Fitbit stock had been in. A pivot to smartwatches that can compete with the Apple Watch also helped FIT post its first profit in two years last October.However, Fitbit's CEO told CNBC that his company's success will be increasingly tied to business customers instead of consumers. The Apple Watch is relentlessly improving, the center of an expanding market of third-party bands, with a wide range of apps available. And it's backed by Apple's huge marketing budget. Meanwhile, Xiaomi continues to churn out cheap fitness trackers that offer the same capabilities as Fitbit models at a fraction of the price. In other words, despite a quarter where the company was finally able to eke out a tiny profit, Fitbit remains stuck between a rock and a hard place when it comes to the consumer market.However, both Fitbit and Apple have found that there's a huge potential market in selling health and fitness devices directly to corporations and health insurance companies. These are corporate customers that have a direct interest in having their members (whether they are employees or individuals covered under a plan) remain as active and healthy as possible. * 7 Breakout Stocks In Early 2019 AAPL is increasingly looking to this market as a potential gold mine for the Apple Watch and its advanced health features. However, not every company or insurance plan is willing to subsidize the cost of such an expensive device. That leaves a big opening for Fitbit, and the company told CNBC that it currently has 6.8 million customers using its devices through various corporate, medical or insurance wellness programs. The new Fitbit Inspire is designed to make signing up through Fitbit Health Solutions an attractive prospect, even for companies with tight budgets.With the Versa smartwatch, Fitbit was finally able to stage the start of a turnaround. However, with Fitbit stock still trading down over 85% from the highs the company hit in 2015, there is plenty of room for that recovery to continue. And with the new Fitbit Inspire, the company is banking on corporate clients and volume purchases to help get it there.As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Fundamentally Sound Dividend Stocks to Buy * 5 Reasons Reeling FAANG Stocks Won't Deliver Big Returns * 3 Reasons Canopy Growth Could Burn You Compare Brokers The post Why You Can't Buy the Fitbit Inspire, FIT's Most Important Release appeared first on InvestorPlace.
Good morning! As the Engadget team limbers up for both Samsung's big Galaxy Unveiled event and the world's biggest mobile phone show (both later this month, we've got two smartphones that balance top-end specs with more wallet-friendly prices.
Fitbit has quietly released a new activity tracker, but don't expect to buy one yourself -- if anything, it'll be issued to you. The company's new Inspire is a fitness band intended for companies that plan to issue wearables en masse, whether it's your health insurance provider or a just a corporation that wants employees to stay active. It's the definition of no-frills. A basic version doesn't do much more than track activity and deliver phone alerts, while the Inspire HR adds heart rate monitoring and phone-based GPS. There's no price listed, but that's likely to vary from deal to deal. It's the company's cheapest device yet, however.