GoPro Focuses on Growth and Reduction, Fitbit Looks to Improve Production Snags

NEW YORK, NY / ACCESSWIRE / April 12, 2017 / Retailers in the wearable technology industry are rumored to be offering discounts to its customers in the future to spur interest. Companies such as GoPro and Fitbit are implementing consumer discount programs to breathe life into what may be an industry headed for life support. Action camera retailer GoPro is working hard to regain investor confidence, while Fitbit is having fits over production problems with its new smartwatch.

RDI Initiates Coverage on:

GoPro Inc.

https://ub.rdinvesting.com/news/?ticker=GPRO

Fitbit Inc.

https://ub.rdinvesting.com/news/?ticker=FIT

GoPro shares advanced 2.88% to close at $8.94 in Tuesday’s trading session. The stock traded between $8.73 and $9.31 on a higher than average volume of 6.4 million shares.

The advance came on the news that the company was launching a camera trade-up program that would get existing GoPro owners back to buy their new, cloud-based product line. The company stated it wanted, “users in the United States to experience the new, cloud-connected GoPro and unlock breakthrough software upgrades slated for 2017.” The program allows GoPro owners $100 off a new Hero5 Black or $50 off a Hero5 Session when they trade in a currently owned, previous generation Hero camera.

GoPro is also taking cost cutting measures by laying off 270 employees and making use of lower cost locations, such as China and the Philippines. The company reported an operating loss of $373 million in FY16, compared to an operating profit of $55 million in FY2015.

Access RDI’s GoPro Research Report at:

https://ub.rdinvesting.com/news/?ticker=GPRO

Fitbit fell 3.29% to close at $5.58 in Tuesday’s trading session. The stock traded between $5.56 and $5.79 on a volume of 7.6 million shares traded. There have been reports that one of the key marketable features of the company’s new smartwatch – being waterproof – is failing test requirements. The company has several options should the problems continue, none of them palatable in the current highly competitive environment against Apple and Google.

If the company chooses to release the watch without being able to guarantee it is 100% waterproof, it may project an image that the watch is an inferior product when compared to Apple. If it holds back release, it will more than likely miss Father’s Day, where it can establish itself as an alternative to Apple’s smartwatch. Pushing the release date into the 3rd quarter of 2017 will run right into Apple’s release of its new smartwatch. Watching on the sidelines is Google, who is beginning to make headway with its own Android OS smartwatches.

Access RDI’s
Fitbit Research Report at:

https://ub.rdinvesting.com/news/?ticker=FIT

Our Actionable Research on GoPro Inc. (NASDAQ: GPRO) and Fitbit Inc. (NYSE: FIT) can be downloaded free of charge at Research Driven Investing.

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