Share Prices Tank
Despite launching new models both FitBit and GoPro took huge losses on their stock price after disappointing sales.
GoPro shares dropped more than 20% last Thursday after missing their quarterly results and by lowering their fourth quarter sales forecast. Apparently this is because their third quarter performance didn’t include the sales of their new GoPro 5 series and the GoPro Karma Drone. Despite the launch of their new products though GoPro still lowered guidance for over-all performance for they year and the last quarter. Over-all their stock is down 52% in the last 12 months.
FitBit, on the other hand, lost more than 33% of their stock price last Thursday again due to disappointing reported quarterly sales figures. How bad? Last year same period they made $45.8M. This year same quarter they made $26.1M. That’s a huge drop. This is despite them recently launching the FitBit Charge 2 . It just wasn’t enough to get them back on track to hit their previously announced targets. Why the slower sales? Apparently analysts are saying that the fitness tracker market is already starting to get saturated.
So yeah, to fans of GoPro and FitBit, both companies are not in a good place. Hopefully they recover and gain momentum this 4th quarter but next year they really have to up the ante to bring in those numbers that they’re going to promise to their stockholders.