Fitbit Targeting Women, Children and the Price Conscious Amidst Stiff Competition

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Fitbit (FIT) believes there is an opportunity to “bring more women into the smartwatch category”, one that is currently 60% male, and is developing a series of newly designed apps for the female user. The company plans on building the largest database of women’s health metrics (from healthy women), tracking menstrual cycles, fitness activity and sleep patterns; while offering users health tips and insight into their fertility window. The apps will be available on the Ionic and newly introduced Versa model; announced as a “mass appeal” (see: affordable) watch, with versions starting at just $199. It should be noted that FIT also sees an opportunity to capitalize with children (8+), announcing the pending release of the company’s first kid-focused tracker.

Howie Long-Short: Fitbit (FIT) shares took a dive (-11% from $5.11 to $4.55) earlier this week (they have rebounded slightly since to $4.91) following a note from Morgan Stanley analyst, Yuuji Anderson, stating, it’s “hard to see a floor” on the company’s share price; while projecting the company’s sale of “new smartwatches will be outweighed by declines in legacy products.” If true, that would explain why the FIT is placing an emphasis on data collection; it’s hoping to resell the information to insurance and healthcare companies and generate some recurring revenue. Shares are down 31% since December 11th as questions remain about the company’s ability compete in a crowded smartwatch market (think: Apple, Xiaomi, Garmin, Huawei).

Fan Marino: A man was sentences to 2 years in jail for creating a phony buyer, with the intention on manipulating FIT’s share price in Nov. ’16. The con filed a document stating FIT had an offer from a buyer prepared to pay far above the share price. As news broke, shares increased 10% and the man dumped his options for a $3,000 profit. Clearly, not a man familiar with the concept of risk/reward.

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Author: John Wall Street

At the intersection of sports & finance.

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