Fitbit again is not having a good time after living the whole year in almost medium status as it seems to prove there is a business for fitness trackers and its own smartwatch.
The victim today is a Wall Street company deflating a “sell” rating on the company’s stock, which usually ends in a huge turn-down of its potential subsequently and flashed a sharp drop-off in the company’s stock value.
Fitbit dropped around 8.5% in the morning after a year that put effort to improve from a steep downtime early this year amid uncertainty around its business.
Fitbit is now gone lower than 16% in the last year. Inconsistent firms are usually vulnerable to these form of swings due to Wall Street company rating the shares, which may range from endorsement to trade the stock based on its effectiveness or analysis of its potential business.
In the case of Fitbit, it’s bad news, because the company has to maintain its share price on high as firms can use shares as part of compensation packages when they need to hire new people.
Also there is also usually a self-esteem component, as the stock price is really a public-facing meter of the company’s productivity (even when people try to criticize its importance), and one that’s capable of waving off potential talent that might be interested in being part of the company.
The last information we received from Fitbit was a slew of apps in its Ionic smartwatch, which contains the inclusion of apps like Yelp and Uber. However as Apple goes on to equip the Apple Wath with current features for health tracking, which shows to be working in a way to diagnose some regular conditions, in a study from UCSF, it will face more rivalry when people view it as a health tracker.