Fitbit stock has declined 30% in the past year
According to a letter published by shareholders rights law firm Robbins Arroyo LLP, a complaint has been filed against Fitbit (FIT) for misleading investors. Fitbit claimed that it had the best-selling fitness tracker on Amazon (AMZN). The letter said, “Fitbit was struggling to differentiate itself from Apple Inc., leading to slowing demand for Fitbit’s products. On November 2, 2016, Fitbit released disappointing financial results and lowered its fiscal 2016 revenue guidance. The company again lowered its guidance in January 2017.”
Fitbit is struggling. Fitbit’s stock price has declined 30% in the past year due to stiff competition from Apple (AAPL) in the wearables market. According to a report from the IDC, Fitbit’s wearable device shipments declined 22% in the second quarter on a year-over-year basis. Apple managed to increase its shipments 38% during the same period. Xiaomi, Huawei, and Garmin (GRMN) all showed positive growth in the wearable device market—compared to Fitbit’s negative growth.