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FITBIT: Betting all on the Ionic. Will it gain much needed market confidence?

FITBIT (NYSE: FIT) had its IPO in mid-2015 at a $20 per share price, peaking in August of that year at $51 per share. The stock was on a high, confidence on the new phenomenon of fitness watches was high in the marketplace.

Since then, there has been some plateau-ing and more than needed skepticism from investors. Bulk of 2016, even with reaching sales milestones, the skepticism was persistent from external forces. Primarily, in 2016, a Class Action Lawsuit and seemingly a failed attempt of critically & tactically winning against the Apple iWatch, kept the company one leg in the “dog house”.

Currently, with stock price hovering in the $20 range, their focus is the new Ionic. The new watch (already available) is to keep the competition at bay with better functionalities and technical strength, including a 4+ day battery life, etc.

Even though the market is dominated by Fitbit, but it might be that investors are skeptical-to-worried about Fitbit not being diversified, compared to Apple, for example.

It’s an interesting dilemma for CEO James Park and the execs at Fitbit.

READ MORE:
TechCrunch
MarketWatch
Forbes
9to5mac.com

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