Fitbit’s (FIT) Stellar Holiday Performance was Tarnished by Missteps – My Thoughts Moving Forward

Fitbit (NYSE: FIT) almost filled in all my checks for a perfect earnings report that could have been a catalyst for a short squeeze and sharp upside rise Tuesday. However, its stellar holiday quarter goes to waste due to surprising quarterly guidance that diverged significantly from analysts’ expectations. While it all works out by year end to conservative full-year figures that meet analysts’ annual estimates, it raises uncertainty and is evidence of an unseasoned management team. Unfortunately, the company misses an opportunity to force a vibrant short squeeze to fuel restoration of shareholder value to stakeholders deserving of it. Still, the deeply discounted on a PEG basis, oversold stock with a heavy short interest could still see a healthy upside rise by week’s end or even day’s end Tuesday, as current market dynamics have been serving deeply oversold stocks. Over the longer term, it’ll take a quarter or two for the company to refashion its image with investors. It’s important to note that there is hope; Facebook (NYSE: FB) also had missteps in its early post IPO days, and it managed to recover nicely. The company has potential but it cannot afford to miss a beat when competing against Apple (Nasdaq: AAPL) and Microsoft (Nasdaq: MSFT). See my full report on Fitbit here.

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