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FitBit: How Far Can We Go?

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FIT (FitBit Inc., $5.70), headquarters in San Fransisco, CA, is a corporation that provides health and fitness devices with software services to create a health log for their user that pertains to their lifestyle.

FIT created an easy to use, a wearable fitness tracker that not only catered to the gym bodybuilder but to the office worker who wanted to track her steps to lose the high calories he at lunch. FIT has done an excellent job with their marketing and customer relatability. However there is one problem, their biggest competitors have beat them.

These competitors are Apple Inc. (Apple Watch), Garmin (Vivo Fit), Whoop (The Whoop fit tracker Used by LeBron James last season), and With things Go (activity and fit. tracker) and more.

A statement released by FIT on their last annual report,

For the remainder of 2018, we expect our gross margin to trend lower due to our product mix shift from connected health and fitness devices to smartwatches and the absence of the one-time benefit from the release of outstanding product return and rebate reserves related to Wynit…

FIT’s largest customer Wynit Distribution announced bankruptcy last year in September 2017 with bad debt expenses over $30.3 million and FIT has reported a substantial decrease in subscriptions.

According to MSN.com/money, FIT has a negative net income of -277.19 million. With penny stock investors enjoy the volatility of the stock, other see a better investment in related stocks such as APPL, GRMN, KYCCE, FTV, GRMN, and KEYS, since FIT comes in the form of a “product feature” instead of a large services provider. Though FITs presence seems to be strong in the athletic and teach department, how long with this last? Will, they merge with a large corporation or can they come up with a better head-turning product?

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Information Attainted:

SEC.gov, MSN.com/money, Bestreviews.com

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