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Fitbit financial results go from one ‘oh dear’ to another. ‘Oh dear’ is an advanced technical analysis phrase used by Wall Street analysts who are not overly happy.
This stock chart doesn’t look too bad
But the actual numbers DO
Remember Garmin reported results for Q1 recently and they were spectacularly good, all things considered.
Back to Google. I mean Fitbit. Slip of the regulatory approval tongue there. Fitbit is even having to nuance the words in their notes like this
“First Quarter 2020 Operational Highlights
- “Smartwatch devices sold grew to 54% of revenue, up from 42% in the first quarter of 2019. Trackers devices sold declined to 42% of revenue, down from 57% in the first quarter of 2019.”
Hey.. the key thing there folks is that the revenue is falling and there might be another Covid-related cliff for it to fall further off.
Fitbit also “introduced Charge 4, our most advanced health and fitness tracker to date with Active Zone Minutes, Sleep tools, Fitbit Pay, and built-in GPS. “. The Charge 4 does look good but, sadly, it might be too little too late and don’t forget that BANDS are a declining product segment and that Garmin has a great competitor product in the same space.
On the positive side. Fitbit does ship a shed-load of cool(ish) devices. They just don’t do it (net) profitably, which is kinda the point of business. The other positive side is that Fitbit shareholders approved the Google takeover at JUST the right point and they must now be praying very hard for regulatory approval to be granted (even the ones that don’t believe in God will be praying hard)