|Bid||4.7100 x 27000|
|Ask||5.0000 x 21500|
|Day's Range||4.8000 - 4.9000|
|52 Week Range||4.2300 - 7.7900|
|Beta (3Y Monthly)||0.64|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 30, 2019 - Aug 5, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||6.75|
Fitbit Inc NYSE:FITView full report here! Summary * Bearish sentiment is moderate Bearish sentimentShort interest | NeutralShort interest is moderate for FIT with between 5 and 10% of shares outstanding currently on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold FIT had net inflows of $1.08 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
SAN DIEGO / ACCESSWIRE / May 20, 2019 / The Shareholders Foundation, Inc. announces that a lawsuit for certain investors in shares of Fitbit Inc (NYSE: FIT) is pending. Investors and or former employees, ...
Coatue Management is a New York City-based hedge fund that was launched back in 1999 by Philippe Laffont. The fund provides additional office in Menlo Park, California. At the end of 2016, it held around $10.25 billion in assets under management. Coatue Management looks for the stocks to invest in from the technology sector, utilizing […]
Alphabet (GOOGL) focuses on reducing risks of heart diseases by working on the development of one-time injectable treatment in collaboration with Verve Therapeutics.
[Editor's note: This story was previously published in April 2019. It has since been updated and republished.]Given their surge over the last few years, tech stocks aren't cheap -- at least when it comes to their actual share prices. Top leaders like Amazon (NASDAQ:AMZN) and Google (NASDAQ:GOOG, NASDAQ:GOOGL) can be had for north of a grand per share, while even smaller tech stocks like ServiceNow (NASDAQ:NOW) can be had for over $100 per share. And while, as we said before, "price is what you pay, value is what you get," there is something about buying cheap stocks that can result in higher returns.So, if it was possible to combine the potential of tech stocks with the financial advantages of low-priced ones, you'd have very powerful weapon indeed.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy that Lost 10% Last Week Luckily, there are a number of those stocks to buy. These cheap tech stocks can be had for under $15 per share, and many of them have plenty of catalysts to propel them forward. They aren't without risk, but they do have plenty of reward potential. So which of those stocks should you look to buy?Here are five cheap tech stocks to buy for your portfolio. Cheap Tech Stocks to Buy: Fitbit (FIT)Source: Shutterstock Share Price: $5.10It's no surprise that former wearable device superstar Fitbit (NYSE:FIT) is now a low-priced tech stock. The device marker spent much of 2017 and 2018 in freefall as wearable device growth has failed to catch up with lofty expectations. And as fellow InvestorPlace contributor Josh Enomoto has mentioned, the segment has been a victim of the dreaded "C" word -- commoditization.So, why be bullish on the floundering device maker?It comes down to healthcare, health insurance and FIT's low prices for devices.John Handcock made waves last year when it announced that it was no longer underwriting traditional life insurance policies and will only be issuing more dynamic policies tied to a wearable device. Corporate America is getting in on the act as well and has started to offer incentives/breaks on health insurance to employees wearing fitness trackers.For FIT, this could be its opportunity. A low price, a name brand and a huge data set of active users makes it an ideal partner in these instances. With healthcare costs rising, firms and employees are going to be doing everything they can to get insurance premiums lower. Already, sales at FIT seem to be picking up. With tracking requirements becoming the norm, Fitbit could be a major winner.And at just over $5 per share, it's worth that gamble. Glu Mobile (GLUU)Source: Shutterstock Share Price: $8.84One-hundred and twenty-two percent. That's a great yearly return for any stock, yet one that makes mobile games for your smart-phone. But for Glu Mobile (NASDAQ:GLUU), its 2018 return may just be a drop in the bucket. That's because GLUU's turnaround is finally paying off.A few years ago, mobile gaming was super hot -- and then the bottom dropped out. GLUU and its rivals were hit hard. In that downturn, the game developer's management undertook a big turnaround plan. For starters, they focused more on games they fully owned rather than celebrity licensed properties. This allowed them to reap higher margins from in-app purchases and downloads. With bookings rising for these so-called growth games, Glu was actually able to be cash flow positive during the fourth quarter.GLUU was also able to reduce its debt load and build a strong cash balance over the last year.With that, GLUU stock has surged. The best part is that the firm's development pipeline still seems robust, with several potential hits coming over the next few quarters. This includes a new World Wrestling Entertainment (NYSE:WWE) game as well as a title under license from Walt Disney's (NYSE:DIS) Pixar. Moreover, several other games in development are targeted at female gamers -- an underrepresented niche. That gives Glu a potentially huge market all to itself.With the firm now firing on all cylinders and gaming still going strong, the less than $9 per share tech stock seems like a bargain at a P/E of 26. Nokia Oyj (ADR) (NOK)Source: Shutterstock Share Price: $4.95Ask many people what they think about Nokia Oyj (ADR) (NYSE:NOK) and odds are, they will say "washed up." And that may be true to a point -- when it comes to devices. But Nokia still remains one of the most important tech stocks in the entire wireless world. The reason comes down to one letter and one number.I'm talking about 5G.As its handset leadership position was fading, Nokia made two shrewd buyouts: industrial conglomerate Siemens' networking business and the Alcatel-Lucent assets. With those two buys, Nokia became an equipment maker that brings all the data, voice and video to the end users. Who cares about what device it's on?This switch has been wonderful for NOK stock. Current 4G networks aren't cutting it with all the streaming video, mobile commerce and gaming we're now doing on our phones and tablets. Because of that, telecom firms are now spending some big bucks to upgrade their networks. And a lot of it is coming NOK's way.Sales at Nokia continue to rise, clocking in at 5 billion euros last quarter. The bulk of that was networking and 5G hardware.And yet, NOK shares remain a castaway among cheap tech stocks. At under $5 and with a 3.8% dividend yield, it's a good stock to buy. TeleNav (TNAV)Source: Shutterstock Share Price: $7.13Sometimes partnering with a larger firm can boost the fortunes smaller tech stocks. For TeleNav (NASDAQ:TNAV), that means being buddies with Amazon (NASDAQ:AMZN). Amazon has been looking for ways to get its AI voice assistant, Alexa, into more devices and into every American's home. A big push in that is into automobiles. This is where TNAV comes in.TeleNav provides several location-based systems to create a smarter, safer & more personalized user experience for drivers. This includes routing, guidance, positioning and search. The kicker is that TNAV's systems are much more than just your normal GPS. They use AI and voice assistants, allow advertisers and in-car commerce -- such as go-ahead ordering -- and the like. Amazon joined with TNAV in a deal that would make Alexa front and center in its units.What TNAV is really doing is building a portfolio of data that Amazon or other firms could potentially massage and exploit later on. What it gets is a huge platform to build on for future real-time advertising, sales and infotainment options. It's a win-win for TNAV, AMZN and other future partners.The opportunity is huge. And yet, TNAV trades at just around $7 per share. That's a huge bargain for its potential -- even more so when considering that firm continues to grow its revenues like weeds and finally has achieved positive cash flows at the end of last quarter.In the end, this is one tech stock that won't stay low-priced for much longer. As a result, it's a good stock to buy. 3D Systems (DDD)Source: Image via 3D SystemsShare Price: $8.73One of the biggest trends in industrial manufacturing, healthcare and even tech itself is 3D printing. The ability to create three-dimensional objects out of metals, plastics or even biopolymers is truly exciting. And over the years, 3D printing has gone from a niche hobby to mainstream production. Leading the way has been top tech stock 3D Systems (NYSE:DDD).However, lately, DDD has been a shell of its former self. The former high flyer and triple-digit-priced tech stock can now be had for around $8.75. At that price, 3D may be a big-time buy.For one thing, the firm is growing. Last year, DDD's revenues jumped 6.4% year-over-year to $687.7 million. At the same time, the growth in several key areas allowed 3D to realize a profit. Adjusted earnings per share for all of 2018 came in at 15 cents. That was versus a loss per share of 2 cents recorded in 2017. So, things have gotten a bit better at DDD now that 3D printing has gained significant steam.And the firm has more levers to pull. DDD continues to push harder into healthcare and the dental sector. Prosthetics, implants and braces have the potential to be massive markets for the firm, one that is being tapped just now.For investors, DDD stock's fall from grace has more to do with it simply losing its momentum and fad status. Which means, value hunters can snag shares of this low-priced tech stock for basement-level prices, making it a good stock to buy.At the time of writing, Aaron Levitt was long AMZN. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Retirement Stocks That Won't Wilt in a Bear Market * 5 Consumer Stocks Ready to Push Higher * 3 of the Best ETFs to Buy for a Play on Gold Stocks Compare Brokers The post 5 Low-Priced, High-Potential Tech Stocks to Buy appeared first on InvestorPlace.
Fitbit (FIT) today announced the next phase of its integration with UnitedHealthcare Motion® by offering Fitbit Charge 3™, the No. 1-selling health and fitness tracker in the U.S.,i as a buy-up option to eligible program participants. UnitedHealthcare Motion is an employer-sponsored wearable device walking program that encourages participants to move more and monitor their activity levels, with the potential to earn more than $1,000 per yearii by meeting certain daily walking goals.
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Last summer, Fitbit introduced its kid-focussed fitness tracker, Ace . Now, the company is back with a new model, Ace 2, and it's dropped the price by $30. Fitbit teased Ace 2 in March, when it announced its Inspire and Inspire HR wearables, but the kid-friendly device is just now available and listed at $69.95.
Fitbit (NASDAQ: FIT) reported stronger than expected first quarter results on May 1. In addition to meaningfully beating top line and bottom line expectations, the results included multiple, other items that are tremendously positive for Fitbit stock.Source: Fitbit The company's revenue rose 10% year-over-year, its tracker revenue rose YoY for the first time in three years, its smartwatch revenue soared 117% YoY, and the revenue it obtains from companies and insurers jumped 70% YoY.Furthermore, FIT did not raise its 2019 guidance, but said it was not doing so only because it chose to be "prudent," a code word for conservative.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Strong Buy Stocks That Tick All the Boxes A Closer Look at FITStill, Fitbit stock fell meaningfully, as investors chose to focus on the few negative aspects of the company's results, including lower average selling prices and conservative Q2 guidance.I believe that these investors are making the classic mistake of focusing on the trees instead of the forest. That's because I think that FIT has a tremendous monetization opportunity that will enable Fitbit stock to at least double over the next year or two. Fitbit's strategy for monetizing its users on a massive level is becoming clear.FIT CEO James Park reported that a large study of diabetes prevention methods found that people who used Fitbit devices, "were more active and lost more weight during the program than those who did not and were more likely to be engaged in the platform a year later."Additionally, subjects who used Fitbit devices averaged an hour more activity per week for much of the program than those who did not, he stated.Clearly, people who use step-tracking devices are more active and, consequently, less like to have diabetes, heart disease and some forms of cancer than those who do not use such devices.As I've written previously, insurers and employers have tremendous incentive to keep their employees and clients healthier.As a result, they will likely be willing to pay meaningful amounts of money to do so. Opportunities Abound for FitbitFitbit is already taking advantage of this opportunity on multiple fronts. Many Medicare Advantage programs, spread around 27 states, are covering Fitbit devices, Park reported. Furthermore, three national health plans are currently using Fitbit Care as their means for diabetes management. "There's a lot of interest (among insurers) in our Fitbit Care product," Park said. With Fitbit Care, the company analyzes patients' data it obtains from its own devices as well as other devices. and uses that data to offer patients ways of improving their health. In the second half of this year, FIT plans to launch a premium offering for individuals based on Fitbit Care. I believe that, over time, Fitbit Care will be adopted by many employers, health insurers, and individuals. As everyone knows, obesity is a major problem in the U.S. and leads to tremendous health problems. Under the principle that "what gets measured gets managed," step-tracking devices definitely help people become more active. Employers and health insurers have a financial interest in keeping their employees and clients healthy. And individuals, of course, have many reasons to want to be healthier and avoid obesity, and Americans already spend a great deal of time and money seeking to accomplish those goals. Therefore, I believe that there's a tremendous addressable market for Fitbit's devices, encompassing both enterprises and individuals. If FIT can obtain a sizable piece of that market, FIT's results and FIT stock will definitely rise tremendously over the long-term. Fitbit Stock and the Monetization WarFitbit is in a "sweet spot" that will allow it to become the leader of this huge addressable market. The smartwatches sold by Apple (NASDAQ: AAPL) and Garmin (NASDAQ:GRMN) are too expensive for most enterprises and many people who want to use step trackers to improve their health. At the same time, many enterprises and people will not be ready to trust Chinese companies who sell cheaper step trackers, but don't have well-respected brand names, with the important task of helping themselves or their clients/employees improve their health. That leaves Fitbit and Samsung as the remaining options, and FIT's devices already meaningfully outsell those of Samsung, giving FIT an important advantage over its Korean competitor. I was disappointed that FIT did not make any new announcements regarding its devices' ability to diagnose diseases or take measurements that are crucial for individuals' health, such as blood oxygen levels or sleep apnea. In the past, I have said that Fitbit must make positive strides in those areas for FIT stock to rally. Still, the company noted that it was continuing to work with the FDA to "test and develop" those types of solutions, and I recognize that it takes a long time to get the agency to approve devices. More importantly, I'm now convinced that, over the next year or two, monetizing Fitbit Care will prove to be a tremendous, positive catalyst for FIT's results and FIT stock., enabling Fitbit stock to at least double during that time As of this writing, the author owned shares of FIT stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Strong Buy Stocks That Tick All the Boxes * 7 Stocks to Buy From the T. Rowe Price Health Sciences Fund * 5 Tech ETFs to Plug In to Big Profits Compare Brokers The post Why Fitbit Stock Is Poised to at Least Double by 2021 appeared first on InvestorPlace.
Shares of Fitbit (NYSE: FIT) fell 7.6% the day after the company reported first-quarter results. Fitbit stock is now down by over 15% on the month. Revenue grew a healthy 10%, while EBITDA improved, albeit at a loss. The company's downbeat guidance disappointed shareholders. If lower prices led to higher volume sales, why is management so negative on its outlook?Source: Denis Kortunov via Flickr (Modified)Let's take a look at the Q1 results for Fitbit stock. The company reported revenue growing 10% Y/Y to $272 million. The non-GAAP loss came in at -($0.15) a share.Unit volume sales improved an impressive 36% Y/Y, driven by a lower ASP of $91. ASP fell 19% Y/Y. Though it is not comparable due to last year's benefit of a favorable one-time item, non-GAAP margin fell 1290 basis points Y/Y to 34.2%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFitbit cut costs by 13% to $151 million. It ended the quarter with $644 million in cash. The stock now trades at 3x cash, based on ~$2 a share in cash and a stock price of $4.96. With no debt on the books and plenty of cash, Fitbit can afford to grow market share through lower ASP. * 7 Strong Buy Stocks That Tick All the Boxes Weak Outlook for Fitbit StockFitbit forecast higher unit sales but ASP falling. For 2019, overall revenue will grow just 1%-4%, or $1.52 billion - $1.58 billion. The market expected revenue of $1.56 billion.For the current second quarter, the EPS loss will be greater than expected, at -$0.20 -$0.17, compared to the consensus of -$0.16. Similar to its full-year outlook, higher unit sales and lower ASP will result in revenue growing 2%-7% in Q2. That is, $305 million - $320 million.Second-quarter gross margin (non-GAAP) will trend higher due to higher smartwatch sales. Disciplined spending in CapEx, at 5% of revenue, will also help. Investing OpportunityFitbit's rate of revenue growth in the single digits will hardly attract momentum investors. The quarterly losses will also scare away value investors. Yet Fitbit stock could give a trading opportunity for speculators. If smartwatch revenue grew 42%, compared to 30% on a year-over-year basis, ASP could rise in the longer term. Sure, 2019 will not be the year that revenue grows in the double digits but that could change in 2020.Revenue from Fitbit's FHS, or Fitbit Health Solutions, grew 70% due to strength from the overseas market. The unit's contribution to overall results is minimal, for now.The $100 million expected revenue in 2019 is just 6% of the yearly revenue. Already, three major health plans use the Fitbit Care platform and devices for diabetes management. Plus, a combination of higher unit sales and sign-ups for FHS could change that in the next few years. Fitbit and the FutureFitbit continued to add new users to its Fitbit platform. And as the introduction of more accessible, affordable devices fuels these user additions, Fitbit will find ways to monetize its platform. Its first step involves selling more Fitbit Charge 3, Fitbit Inspire, Fitbit Inspire HR and Fitbit Versa Lite Edition.Collectively, sales of these devices represented 67% of revenue in the first quarter.Fitbit's unit sales growth is a notable accomplishment in light of higher cost controls. R&D spending fell 15% to $63.5 million. Sales and Marketing costs fell 5% to $64.8 million as the company relied on fewer promotions and transaction costs. G&A fell 27% to $22.5 million as litigation spend fell and facility costs decreased. The Bottom Line on Fitbit StockWall Street analysts, despite issuing mixed ratings on the stock following the earnings report, still have an average price target of $6.60 on FIT stock. The upside of 33% is possible if Fitbit succeeds in its transformation. By growing its addressable market through global expansion, lower unit prices will bring in more users.Fitbit will transition from relying on hardware sales to generating recurring revenue from its healthcare platform.Bearishness on FIT stock picked up steam months ahead of the earnings report. When management issued a weak near-term outlook, the stock plunged.Speculators could start a position in the stock to play the rebound. Investors who believe the turnaround is real and is patient enough to wait for 2-3 years could get rewarded.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 * 7 Strong Buy Stocks That Tick All the Boxes * 7 Stocks to Buy From the T. Rowe Price Health Sciences Fund * 5 Tech ETFs to Plug In to Big Profits Compare Brokers The post There's an Outside Chance That Fitbit Stock Is Worth Another Look appeared first on InvestorPlace.
Looks like a George Costanza quarter in the making in terms of earnings for some names, one where down is up and up is down. did it again, putting forth better than expected numbers on both the top ($271.9 million versus $259.7 million) and bottom line (15 cent loss versus 22 cent loss consensus) after the market close Wednesday, and was greeted favorably in after-hours trading, only to be treated badly on Thursday (-7.6%). Positives from the quarter included year/over smartwatch revenue up 117%, tracker devices in positive territory (+17%) for the first time in three years, as well as the Health Solutions unit growing 70% year/over year to $30.5 million in revenue, with expectations to hit $100 million for the year.
These Three Stocks Lost Over 7% Overnight(Continued from Prior Part)Fitbit reported first-quarter resultsConsumer tech company Fitbit (FIT) stock fell 7.6% on May 2 to close trading at $4.96. The stock is currently trading 17% above its 52-week low
The stock market is still trying to digest comments from Federal Reserve chairman Jerome Powell on Wednesday. The market came into the Fed announcement near its highs, so this type of reaction shouldn't be all that surprising. Traders are looking to see if the market stabilizes in the short term or if a larger pullback is still needed. Let's look at some top stock trades going forward. Top Stock Trades for Tomorrow 1: QualcommThe Fed day reaction gives investors an added obstacle to maneuver. So far, the indices have shown the potential to breakdown, but the bulls have withstood early assaults by the sellers. The question is whether that action continues or if longs wave the white flag for a bit. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Cheap Stocks to Buy in May, But Don't Go Away If they do, that could create big moves for individual stocks and make life harder in these names. Stay disciplined and nimble when moving forward, for which Qualcomm (NASDAQ:QCOM) is an excellent example. Shares raced up to $90 in Thursday's session after reporting earnings, but the pullback in the indices have knocked it down. If QCOM can regain its footing at prior uptrend resistance near $82 to $83, bulls may look at it as a buy-the-dip opportunity. Should the markets embark on a larger pullback, we may see Qualcomm stock down near $75. If so, see how it handles this level and consider it a possible buying opportunity. Top Stock Trades for Tomorrow 2: FitbitFitbit (NYSE:FIT) is under pressure Thursday despite beating on earnings and revenue expectations. After breaking its 50-week moving average and taking out last month's lows, FIT stock has been in full blown selloff mode. Shares are now locked in a downtrend channel and it's hard to know where exactly support will come into play. Since 2018, the $4.80 level has seemed to draw in buyers, while the stock is bouncing off $5 now. See where FIT ends the week. Short-term bulls may be able to use this week's low to determine a reasonable stop-loss on a speculative long position. I personally would rather wait for higher-quality setups in higher-quality stocks than take a position in FIT right now. Top Stock Trades for Tomorrow 3: AlteryxThis one has been a total monster, which is one reason we have Alteryx (NASDAQ:AYX) on our top mid-cap growth stocks list. Shares raced higher on Thursday following strong earnings, but are currently off those highs as volatility picks up in the broader markets. The stock -- rather conveniently -- found sellers up near channel resistance and we'll have to see where it goes now. I would like to see $90 hold as support on the downside and for AYX to retest its new highs. A push to $100 isn't out of the picture. On a pullback below $90, AYX has uptrend support near $83 and the 20-day moving average at $85. Just below at $80 is notable support and the 50-day moving average. I'd be lying if I said a pullback to this area wasn't attractive. Top Stock Trades for Tomorrow 4: Advanced Micro DevicesAfter opening near $29, Advanced Micro Devices (NASDAQ:AMD) found sellers on Wednesday in its post-earnings trading session. However, shares are rebounding on Thursday, up more than 5% at the moment. I would love to see AMD stock take out $29 and push into the $30s. Below Thursday's low increases the odds of testing the 50-day moving average, but right now, AMD is looking attractive. Watch for a possible breakout over $29 in the next few sessions. Top Stock Trades for Tomorrow 5: MicrosoftAfter gapping higher on earnings last week, Microsoft (NASDAQ:MSFT) is finally pulling back. The stock filled that gap on Thursday and aggressive bulls will want to buy this dip. They can use a close below the 20-day moving average and uptrend support as their stop-loss. Below this level and $120 is in the cards. Conservative bulls and/or longer term investors may consider buying at either of these levels, (the 20-day or $120). * The 10 Best Stocks to Buy for May A rebound from current levels should return MSFT stock back to $130+ provided that the overall market doesn't tank. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Best Stocks to Buy for May * 5 Elephant-Sized Companies Warren Buffett Could Buy * 7 Cheap ETFs for Novice Investors Compare Brokers The post 5 Top Stock Trades for Friday: AYX, AMD, QCOM, FIT appeared first on InvestorPlace.
Is Fitbit Inc (NYSE:FIT) a good bet right now? We like to analyze hedge fund sentiment before doing days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage of […]
Analyzing Fitbit's Performance in Q1(Continued from Prior Part)Fitbit’s market shareFitbit (FIT) is expected to gain market share in the global wearable space. Fitbit has managed to increase its shipments 36% this quarter by launching lower-priced
Fitbit (NYSE:FIT) reported Q1 earnings with some good news for investors. The company beat analyst expectations on revenue, sold 36% more devices than last year and saw its trackers post year-over-year unit growth for the first time in three years. Its Health Solutions business saw 70% growth. On a less positive note, ASP dropped and the company still lost 31 cents per share.Source: Fitbit Investors' reaction was mostly positive and Fitbit stock continued its 2019 roller coaster ride, closing up 1.7% and gaining an additional 2.4% in pre-market trading. However, it has since fallen back to earth, down 4.6% at the time of this writing.On May 1, Fitbit released its Q1 earnings report. For FIT investors there was more good news in there than they have become accustomed to hearing. InvestorPlace - Stock Market News, Stock Advice & Trading TipsRevenue was up 10% year-over-year, and it was the result in sales growth across all the company's product lines. Even fitness trackers -- Fitbit says unit sales of its smartwatches grew 117% year-over-year. That's more than holding their own against the market leader Apple (NASDAQ:AAPL) Watch. In addition, sales for fitness trackers saw 17% growth on the year. That's worth spiking out because it marks the first time in three years that Fitbit has seen growth in this segment.In addition, the company's Health Solutions division, which InvestorPlace contributor Larry Ramer noted as a key factor in the potential for a Fitbit stock rally, saw year-over-year revenue growth of 70%.Overall, Fitbit sold 2.9 million devices in Q1 (up 36% year-over-year), which handily beat analyst expectations of 2 million. In addition, the $271.9 million in revenue for the quarter also exceeded the $259.7 million that analysts were projecting. * 10 Cheap Stocks to Buy in May, But Don't Go Away The degree of growth in sales numbers and the surprise signs of life in the fitness trackers category naturally boosted Fitbit stock, which closed up 1.7% and has been trading up an additional 2.42% in the pre-market. But There Are Some Concerns While FIT's Q1 numbers had some real positives for the struggling company, they also revealed some potential causes for concern. Specifically average sales price (ASP). That number fell rather dramatically. And earnings, which remained in the red, with an average loss per share of 31 cents (although that was an improvement over the 34 cents loss per share in Q1 2018). When you look at the growth in devices and compare it to the growth in revenue, the numbers don't quite add up. You would expect the revenue numbers to be even higher. The reason they aren't is that Fitbit has begun to compete aggressively on price. The company introduced a new Inspire line of inexpensive fitness trackers earlier this year with prices starting at just $69.95 along with a stripped down version of its Versa smartwatch (the Versa Lite Edition) which has a $159.95 price tag. * 7 of the Best ETFs to Buy for a Slowing Economy Where analysts were looking for an ASP in the $109 range, Fitbit reported an ASP of $91 per device. The strategy of targeting value-conscious consumers has the potential to pay off. If Fitbit can keep growing unit sales this way, it can expand its platform and the growth in its user base would make the company's Health Solutions division more attractive to big clients like insurance companies.The downside is margins drop and the company has to sell a lot more devices to be profitable. The margin pressure was evident in the Q1 earnings report, which saw gross margins shrink from 46% a year ago to 32.9% in Q1 2019.Fitbit remains in a tough position. It's fighting for smartwatch market share against Apple and Samsung, and trying to re-ignite consumer interest in fitness trackers -a market where Xiaomi has become dominant by selling Mi bands starting at just $30. If the company's new strategy of cutting prices pays off with sustained sales growth and further inroads into the corporate health market, that will be good news for Fitbit stock. If not, FIT investors can expect the roller coaster ride to continue.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 * The 10 Best Stocks to Buy for May * 5 Elephant-Sized Companies Warren Buffett Could Buy * 7 Cheap ETFs for Novice Investors Compare Brokers The post Fitbit Stock Tumbles Despite Reporting First Tracker Growth in 3 Years appeared first on InvestorPlace.
Fitbit Inc (NYSE: FIT) reported first-quarter results that came in better than expected, highlighted by growth in devices sold but a drop in average selling price. Fitbit reported a beat across multiple metrics, including revenue by 6 percent while device growth of 36 percent year-over-year beat expectations, Morgan Stanley's Katy Huberty said in a research report. Gross margin of 34.2 percent in the quarter was at the low-end of management's guidance and fell 1,300 basis points from last year due to a difficult comp and a higher mix of lower-margin smartwatches.
The global health care market is among the AI industry's fastest-growing subsectors. Watch this transformation panel to find out how companies in this space are using big data analysis and AI to reinvent drug development, diagnostics and delivery, featuring a discussion led by CNBC.com reporter Chrissy Farr with insitro founder and CEO Daphne Koller, Microsoft Healthcare Corporate Vice President Peter Lee, Livongo president Dr. Jennifer Schneide and Fitbit co-founder and CEO James Park.
The "Halftime Report" traders answer viewer questions on ArcelorMittal, Alibaba, Fitbit and Allergan