FitBit’s bad year just got a whole lot worse.
Amid lawsuits that the heart rate monitor mechanism on the FitBit was giving inaccurate readings, which then threw off other statistics like daily calorie burn, Fitbit‘s stock plunged almost 20% Tuesday February 23, 2021 after the company announced late Monday that sales and earnings for the first quarter would fall short of what analysts’ had projected.
FitBit reported strong holiday sales last year, but investors are growing increasingly concerned that Fitbit is just another flash in the pan fad, likening it to the GoPro, another form of wearable technology that at one point was the must-have camera, but quickly disappointed on Wall Street.
While wearable technology was forecast to be the number one fitness trend in 2021 by the American College of Sports Medicine (ACSM), according to CNN Money, FitBit’s new Blaze smartwatch, which the company promoted during the Super Bowl, isn’t getting great reviews, being dubbed a inferior “me-too” product when compared to heavy tech hitters like Apple and Samsung, and leading fitness companies like Garmin, Under Armour and China’s Huawei.
During the company’s conference call with analysts on Monday, FitBit executives revealed plans to invest more into research and development in 2021 to develop software that will make them a digital health leader in the market.