Udall: Fitbit Could 'Annihilate The Quarter'

Despite shares taking a beating Tuesday afternoon and Wednesday morning, Sean Udall thinks Fitbit Inc. FIT is still in a great position, saying the wearable tech company could "anahilate the quarter."

"If I could lay out a list of 20 companies that I think are going to crush the quarter and probably report pretty well in the next quarter after, Fitbit would be near the top of the list," he said on Wednesday's edition of PreMarket Prep. 

Misunderstood Company

Udall, the chief investment officer of Quantum Trading Strategies, thinks Fitbit is "a little misunderstood" as a company, citing the massive raid on the news that they released a watch. He says Fitbit's reliance on several cheaper products as opposed to one expensive product bodes well for them, saying "The fact that they sell these products at a lower price point is pretty positive for them."

Today could be tougher, he noted, though that could be said for the market as a whole. The stock opened for trading at 23.94, down from 30.96 in the last 24 hours. 

Long-Term Outlook

Udall thinks Fitbit could have some long term issues, stemming from increased competition from a more developed Apple Watch. But, he thinks what could save them is that the two companies operate in different price categories. said he's caught a lot of good trades off it. 

"My estimation longterm, I think the market is big enough for both these companies," he said. "I think Fitbit can sell $100-$200 products and I think Apple can sell $499-$1,000 products, and frankly they shouldn't run into each other too much."