Fitbit share value continues to plummet following Blaze smartwatch announcement

Shawn Knight

Posts: 12,795   +124
Staff member

Fitness tracking specialist Fitbit unveiled its first smartwatch last week ahead of the Consumer Electronics Show. The unassuming device, which Fitbit described as a smart fitness watch, hasn't exactly received the reaction executives were no doubt hoping for.

Since announcing the Fitbit Blaze on January 5, the company's share value has nearly been cut in half. Shares are currently trading south of their initial public offering price of $20 for the first time ever, leading many to wonder what went wrong.

On the surface, there's not much to dislike about the Fitbit Blaze. Its outward appearance is arguably no better or worse than the competition and its five days of promised battery life is rather impressive. Even still, analysts are divided on the subject.

S&P Capital IQ analyst Angelo Zino believes Fitbit should focus on products that cost less than $100 and focus heavily on wellness. An analyst from Leerink Research concurs, viewing the Blaze as a strategic misstep and a style miss with poor sales prospects. Another analyst from the same firm disagrees, seeing the Blaze as an improved fitness band that health-conscious consumers will like.

R.W. Baird noted last week that investors may also be concerned about the lack of updates to existing Fitbit products like the Charge and Charge HR.

Legal issues aren't helping matters, either. Fitbit last week fielded a class-action lawsuit from numerous customers complaining of the inaccuracies of select Fitbit wearables. Specifically, the suit alleges the heart rate monitor within its PurePulse trackers are off by a "very significant" margin.

Fitbit spokesperson Heather Pierce told Bloomberg via e-mail they do not believe the case has merit. Fitbit stands behind its heart rate technology, Pierce said, adding that they plan to vigorously defend the lawsuit.

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Posts: 209   +96
Wtf? it seems a fine product. Analysts and traders astound me...
I agree. Then again I'm very happy with my 29$ windows phone➕ 64gb SD card so what do I know? Maybe if I had instead spent 500$ I would have more fun with tindergram?


Posts: 312   +100
Wtf? it seems a fine product. Analysts and traders astound me...
These kinds of devices are the only smart wearables I can see any sense in but people are full of sh!t, they'll find something to complain about with any and everything. I'd buy one of these things.
I wouldn't. I can't imagine anyone willing to buy it. Besides you... but you more like an anomaly and exception to the rule.

Uncle Al

Posts: 7,747   +6,376
As my boy tells me "It is what it is" and Fitbit must either react to the market and adjust accordingly, or risk losing sales, and their share of the market place. "Market driven" is more than pretty words!


Posts: 738   +570
My wife and I are proud Fitbit One owners and we wear ours everyday. We really like the data we get and our only complaints are the initial buying price and the constant failures of the device. I've gone through 3 in two years and my wife has gone through 2 in two years. I will say however, Fitbit has been replacing them for us when they fail but it's still a bit annoying for such an expensive and small gadget. I like the smartwatch but again, there's cheaper options out there unfortunately. I tend to agree with the people saying Fitbit needs to focus on some more affordable wearables.