Fitbit Fatigue, Analyst Sees 50% More Downside

In less than a year, Fitbit has gone from the darling of the wearable trend, to a company struggling to keep investors excited in the future. After the market closed Monday afternoon, Fitbit Inc FIT reported both top and bottom line beats over analyst estimates. However, the street was very concerned with Q1 guidance which came in well below analyst projections.

Fitbit sees Q1 adjusted EPS ranging from $0.00-$0.02, much lower than the $0.24 analysts anticipated. Revenue guidance for Q1 did not fare any better, with the company anticipating $420-$440 million against the $484 million analysts predicted.

Benzinga reached out to long-time Fitbit bear, Global Equities Research Trip Chowdhry, who said that Fitbit's IPO "marks the peak" of the company and investors should "take profits."

Regarding the disappointing Q1 guidance, Trip said that he believes "[Fitbit] has 50% more downside risk" from current share price. Shares of Fitbit currently trade at $13.80, which implies that Trip sees shares sinking as low as approximately $7/share.

Fitbit had its initial public offering June 18th 2015, where shares originally priced at $20 and eventually opened at $30.40/share.