Can Fitbit Stock Bounce Back After Last Week's 10% Drop?
Shares of Fitbit (NYSE: FIT) kicked off last week by hitting their highest levels since January, but an analyst downgrade a day later was all it took to send the wearable-tech pioneer sharply lower. Fitbit stock tumbled 9.6% last week, after Jim Duffy at Stifel downgraded the stock from "hold" to "sell."
Duffy thinks hopes for a turnaround at Fitbit next year are too optimistic. He sees the top dog in fitness-tracking bracelets continuing to post losses and burn through cash in 2018. Fitbit's revenue would need to bounce back and grow at a clip in the mid-teens next for Fitbit to hit breakeven on its operating margin, and that's a high hurdle for a company coming off four straight quarters of double-digit percentage declines in revenue.
Image source: Fitbit.
Source: Fool.com
