Fitbit Inc (FIT) Shares Fall Over 17% After Announcement of New Blaze Smartwatch

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Announce a new product, and usually your stock goes up. At least this is what we have seen from the likes of Apple, Microsoft and Google as of late. However, for Fitbit Inc (NYSE:FIT) this certainly was not the case today, after the company launched their new Fitbit Blaze Smartwatch — a watch that many feel is a competitor to the Apple Watch.

More than likely the cause for decline today isn’t what Fitbit Inc (NYSE:FIT) did, as the Blaze looks to be a very nicely built device, but more the fact that their competition seemingly has increased. Many companies are launching both fitness trackers and smartwatches at CES 2016 this year, including Under Armour who unleashed a whole product line of fitness products.

Fitbit Inc (NYSE:FIT) has made a name for themselves and they will certainly sell the Blaze to many customers on name itself. Whether competitors take some of the market away from them is yet to be seen.

The stock is down 17.88% or $5.3 following the news, hitting $24.37 per share. About 25.51M shares traded hands or 375.93% up from the average. FIT has risen 6.00% since December 6, 2015 and is uptrending. It has outperformed the S&P500 by 10.69%.

From a total of 12 analysts covering Fitbit (NYSE:FIT) stock, 8 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 67% of the ratings are positive. The highest target price is $79 while the lowest target price is $16. The mean of all analyst targets is $45.71 which is 87.57% above today’s ($24.37) stock price. Fitbit was the topic of 17 analyst reports since August 6, 2015 according to the firm StockzIntelligence Inc. Mizuho initiated shares on December 18 with a “Buy” rating. Cleveland initiated shares with a”Neutral” rating and a $38 target share price in their report from a September 15. Barclays Capital upgraded FIT stock in a recent report from November 30 to a “Overweight” rating. Pacific Crest initiated the rating on September 15. Pacific Crest has a “Overweight” rating and a $47 price target on shares. Finally, Sterne Agee CRT initiated the stock with a “Neutral” rating in a report they issued on a September 29.

Fitbit, Inc. is a provider of health and fitness products. The company has a market cap of $5.78 billion. The Company’s Fitbit platform combines connected health and fitness devices with software and services, including an online dashboard and mobile applications, data analytics, motivational and social tools, personalized insights, and virtual coaching through fitness plans and interactive workouts. It has 68.97 P/E ratio. It offers a number of fitness products, including Fitbit Zip, Fitbit One, Fitbit Flex, Fitbit Charge, Fitbit Charge HR, Fitbit Surge and Aria.

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