Q1 Checks Suggest Fitbit No Longer Owning The Wearables Market

Citigroup analyst Stanley Kolver reiterated a Sell rating for Fitbit Inc FIT with a price target of $5.

The analyst is concerned by slipping wearables market share, currently at 12 percent after the first quarter and down from 23 percent year over year.

The former No. 1 in the market fell to third, behind Apple Inc. AAPL and Xiaomi with 15 percent each.

Checks on app downloads, Google searches and pricing suggest continued weakening domestic sales in the near-term.

Kolver noted that while U.S. sales may be lagging, the company’s international business — particularly in Europe and Latin America — is showing improving trends.

The largest factor going into second-half fiscal 2017 will be Fitbits product cycles and launches into new categories, including watches and headphones.

In the calendar first quarter, companies with “watches” were outperforming those with “trackers.”

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