Fitbit Takes 18% Inventory Hit For Invading Apple’s Private Smartwatch Area
A lot for the Christmas bump for Fitbit shares.
After seeing an enormous increase following Christmas — when the app topped the App Retailer, indicating that the gadget appeared to be a well-liked present — Fitbit shares tumbled greater than 18% in buying and selling at this time. Beforehand, Fitbit had gained 38% on the yr after going public in 2015, and bumped an additional 5% after topping the App Retailer.
The possible offender? The corporate is moving into the smartwatch market with a brand new health-oriented smartwatch the corporate unveiled at CES in the present day. After the announcement, shares fell all through the day earlier than ending down 18%.
The Fitbit Blaze, beginning at round $200, represents not solely new competitors with smartwatch makers, but in addition probably a scarcity of focus for the corporate — which buyers could also be punishing. Fitbit had carved out a robust area of interest within the health monitoring market, setting itself up for one of many strongest inventory performances from corporations that went public final yr.
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That’s an space the place not solely smartwatch makers like Apple and Pebble reside, but in addition one that’s seeing new entries from corporations like Fossil. That watchmaker just lately purchased Misfit for $260 million to be able to carve a path into the smartwatch market.
Time will inform (no pun meant) whether or not the corporate will be capable of be aggressive within the smartwatch market, however for now, buyers appear to be displaying an entire insecurity in the corporate’s new curiosity within the smartwatch market.