This Is Why Fitbit Just Sank To An All-Time Low

Shares of Fitbit are not having a good year so far. The stock just hit a record low of $5.46 on Tuesday.

It was last November that Fitbit released disappointing third quarter earnings that showed net income was cut in half.

It was during this time that the company also slashed its earnings per share guidance for the crucial holiday quarter to just a quarter of what analysts had been expecting.

When that news came out, the stock lost one third of its value just that day.

When the company did announce the fourth quarter preliminary results, the guidance moving forward from there was also disappointing. Investors were not happy and on January 30th, the stock lost another 15Th of its market cap.

Fitbit is now down more than 25% this year so far and since its all time high of $47.60 back in July of 2015, has lost 88% of its value.

The company is also in a patent infringement lawsuit with Jawbone.

Jawbone filed a lawsuit in 2015 against Fitbit for patent infringements and alleges that Fitbit stole trade secrets from Jawbone when it poached former employees.

The lawsuit states that Fitbit gained access to some of the company’s trade secrets after Jawbone employees were hired away to work for Fitbit.

Fitbit has defended itself and said it never accessed any of the files in dispute, or used them for any of its products. The Fitbit employees in question did turn over 18,000 files to the California Superior Court that belonged to Jawbone.
Fitbit has also counter-sued Jawbone for infringing on its own patents.

“Jawbone’s latest attempt to bring additional baseless trade secret claims comes on the heels of it suffering another defeat in its similarly meritless patent litigation against Fitbit at the [International Trade Commission].” Fitbit said in early 2016.

Disclaimer: We have no position in Fitbit Inc. NYSE: FIT) and have not been compensated for this article.