On Friday, Fitbit (NYSE:FIT) shares fell as much as 9.3%. This is pretty significant as Friday’s decline has now brought down Fitbit’s year-to-date loss to 15.5%.
The San Francisco-based company once sparked a flame in the fitness tracker industry, but customers have lost a tremendous amount of interest as Fitbit has not been innovative enough with their products to keep their attention or their loyalty.
According to Stifel, which downgraded its stock to ‘Sell’, the company will not be profitable and it will keep on burning through their cash in 2018.
Here’s what Jimmy Duffy of Stifel had to say about the matter on Friday, “The franchise and customer database does have strategic value and the balance sheet can sustain cash burn through 2018, but absent a change in direction and sudden acceleration in health care system revenue contribution, we see shares lacking a catalyst (without profits, not even corporate tax reform).”
While Fitbit does not seem to be on track right now to reaching maximum profitability, Stifel did mention that Fitbit might have promise in regards to the long-term.
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