Fitbit kit not a hit
Fitbit is giving investors cause for concern after the wearables company posted a 43 per cent drop in profits, year on year.
The fall comes despite seeing Q3 2016 revenues climb by 23 per cent to $504m and total unit sales were up by 11 per cent. The company noted the profit fall was based on a number of factors, including a 91 per cent increase in its R&D spending.
More concerning, however, were the company's expectations for the holiday season. Fitbit estimates that its busiest sales period of the year will probably only see sales grow by about 2 to 5 per cent over the year-ago quarter.
Investors gave the company a right kicking in after-hours trading, as Fitbit stock fell by 29 per cent to $9 per share, less than half of its 2015 IPO starting price. ®