Taking a Look at Whether Wearables Need to Have a New Look

NEW YORK, NY / ACCESSWIRE / March 16, 2017 /
Fitbit and GoPro are two companies that have been very popular with their wearable technologies. These are not the only two companies losing market share to generic competitors, as major players Apple and Google have seen their Apple Watch and Google Glass wearable technologies not making it into the cultural mainstream. While these latter two companies are more diverse in their technologies, Fitbit and GoPro have quality products that are struggling to find a consistent following.

RDI Initiates
Coverage:

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

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

Fitbit stock price rose 16 cents a share to close at $5.70. After hours trading saw a continued slight upward movement in price. The company’s shares are down nearly 22 percent year to date and investment and stock analysts attribute the pessimism to the company’s decision to issue a preliminary guidance statement on January 30, for the result of 4th quarter of 2016, when it clearly saw that it would not meet revenue expectations. Stock tanked nearly 16 percent on the same day and is moving near to $6 since then. A guidance statement is essentially a warning flag to investors that a company is not expected to meet revenue projections to minimize the impact on the future of the stock price, as the stock is, Fitbit admitted to its investors that it did not accurately assess the significant drop in consumer demand for its fitness tracker watches. This will likely require the company to continue to assess its product lines and find new revenue sources.

Access RDI’s Fitbit Research Report at: https://ub.rdinvesting.com/news/?ticker=FIT

GoPro stocks rose 11 cents a share on Wednesday to close at $7.35. With wearables company Fitbit struggling, it can be asked how GoPro managed to rise in price on Wednesday. Well, part of the answer can be found in the company filed an 8K form, Costs Associated with Exit or Disposal Activities, with the SEC. In plain English, this is a form that basically says the company is cutting costs – significantly. GoPro was approved to undergo a restructuring of its business, including the global reduction of its workforce while aiming to reduce operating cost in the year 2017 by $200 million over prior year to the level of below $585 million. It estimates it will cost as much as $10 million for the restructuring to take place, most which will be cash expenses for severance costs. The costs will be included in the company’s 1st quarter financials.

Access RDI’s GoPro Research Report at: https://ub.rdinvesting.com/news/?ticker=GPRO

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

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Hemal K. Gandhi, a CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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