Scalper1 News
Fitbit (FIT) could use a spotter. The maker of wearable activity trackers saw its shares tumble Thursday, a day after the company reported a second-quarter earnings beat that prompted several analysts to raise their price targets. Fitbit stock was down 14.5% in midday trading on the stock market today, near 44.20. Shares hit a record high of 51.90 on Wednesday, ahead of Fitbit’s first quarterly report as a publicly traded company. Fitbit went public on June 18 at 20. A decline in the company’s gross profit margin — to 47% in the second quarter from 52% in the year-earlier quarter — spooked investors. The gross margin decline “is a sticking point in what’s otherwise a strong beat-and-raise quarter,” RBC Capital Markets analyst Mark Sue said in a research report Wednesday. Scalper1 News
Scalper1 News