Fitbit shares are crashing after hours after slashing forward guidance. First quarter numbers beat on top and bottom line; EPS came in at $0.05 vs $0.03 estimate and revenues were $505.4M vs $443M estimate.
Shares are being demolished because the realization that everyone who was going to buy a Fitbit already has. They only expect Q2 revenues of a paltry $565 million.
The market for wearables is mature and the moat separating competitors from grabbing market share is less secure than the Mexican border.
FIT shares were already off to a wretched performance to start the year, down more than -40% year-to-date:
It appears shareholders are in for another slippery quarter.
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