Fitbit easily smashed Q4 estimates due to a strong holiday season.
The weak Q1 guidance is a mixed blessing by adding to worries over the fad nature of the business and providing a lower entry point.
The valuation in the stock is finally compelling with the market no longer having any expectations from the company.
Despite the strong holiday sales, Fitbit (NYSE:FIT) trades near post-IPO lows due to the self-inflicted wounds and market fears highlighted in my previous research. Unfortunately, for investors, the company has a long way to go to prove that the fitness tracking business isn't a fad and Under Armour (NYSE:UA) isn't a competitive problem.