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Fitbit and GoPro: Stock Trends since Their IPOs

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Fitbit stock has fallen more than 16% in 2017

Fitbit (FIT) stock has fallen more than 16% in 2017. Fitbit was listed on the NYSE in June 2015 and was trading at ~$20.00. The stock rose almost 50% in its first day on the exchange. In August 2015, Fitbit stock reached an all-time high price of $44.93. The stock has since fallen 87% and is currently trading at $6.12.

The primary reasons for Fitbit’s stock decline are increasing competition in the global wearables market. Fitbit is competing with heavyweights such as Apple (AAPL), Samsung (SSNLF), and Garmin (GRMN) in the wearables space.

Additionally, Fitbit attributed the decline in wearable shipments to saturation in developed markets such as the United States and Australia.

In 2Q17, Fitbit’s shipments fell more than 40% YoY (year-over-year) to 3.4 million units. Its market share fell to 12.9% from 24.1% in 2Q16. Fitbit is now trading 25% above its 52-week low of $4.90 and 57% below its 52-week high of $14.26.

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GoPro stock has fallen almost 70% since IPO

As with Fitbit, GoPro (GPRO) stock has fallen almost 70% since its initial public offering (or IPO) in June 2014. GoPro stock touched an all-time high of $98.47 on October 7, 2014, indicating that the stock has fallen more than 90% in the last three years. Fitbit and GoPro each saw their stock prices rise significantly after their IPOs, but they were unable to sustain their respective trends.

A significant decline in shipments for GoPro and Fitbit also contributed to this drop in their respective stock prices.

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