Should Investors Ditch Fitbit?
It took just six months this year for Fitbit (NYSE: FIT) to lose more than half of its value. While some investors might be tempted to pick up the stock now that it has begun to bounce back from the all-time low it set last month, there are still serious issues for the wearables pioneer that they shouldn't ignore.
Fitbit delivered modest revenue growth of 4.8% in its most recently reported quarter. The problem is that with a gross margin of 34.5% being far below the 39.8% the company was able to generate a year prior, that sales gain still resulted in a lower gross profit. To its credit, the company has been able to bring down expenses, but given it had a significant $118 million loss in the year-ago period, Fitbit still has a lot of work to do to get to the breakeven point.
IMAGE SOURCE: FITBIT.
Source Fool.com
