• Fitbit forecasts dismal holiday quarter, shares sink

    Fitbit, which launched two new fitness wristbands, Charge 2 and Flex 2, in late August, said it sold 5.3 million devices in the quarter.
    Wearable fitness device maker Fitbit Inc’s revenue forecast for the key-holiday shopping quarter fell well below of analysts’ estimates, hurt by soft demand and production issues related to its new Flex 2 wristband. Shares of the company, which also reported lower-than-expected quarterly revenue, plummeted more than 30 per cent in extended trading on Wednesday and were set to hit record-low levels on Thursday. Fitbit forecast revenue of $725 million to $750 million for the October-December quarter. That was well below analysts’ average estimate of $985.1 million.

    The forecast implies revenue growth of 5.4 per cent at the top end. Analysts were expecting growth to pick up to 38.4 per cent…

    [Read More…]