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A Fitting Drop For Fitbit

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  • As predicted, Fitbit dropped after the stock reached $50 despite strong Q2 earnings.
  • The company is building a strong network that compels customers to remain in the ecosystem.
  • The valuation proposition remains unappealing even after the recent to drop to $42.
As predicted after the IPO, Fitbit (NYSE:FIT) it a wall when the stock surged above $50 prior to the Q2 earnings report. At that price, the stock had a valuation in excess of $12 billion based on 248 million shares outstanding making it difficult for investors to see positive gains.

Please read the full article at Seeking Alpha.


Disclosure: No positions mentioned. Please review the disclaimer page for more details. 



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