Fitbit has just filed for a $100 million IPO and one thing is for sure, it will never be one of my Big Bet Stock Picks. If you are wondering whether you should buy Fitbit stock when the IPO debuts, you need to think long and hard about whether this company has what it takes to separate it from all its competitors. Personally, I don’t think the stock will be a good investment.
My Experience With The Fitbit Charge HR
I bought a Fitbit Charge HR one month ago and I have been wearing it every day. I paid the list price of $149.95 + tax and I got it at REI after calling several other retailers and finding they were out of stock. After reading many reviews of the product, I must say that what I got was just about what I expected. I’m overall happy with my Charge HR but I really wonder how long I will keep wearing it with the limited benefits it gives me: pedometer, heart beat monitor that often doesn’t work right, and sleep tracker.
The pedometer works pretty well when I use it for long walks but I am convinced that around the house, it records too many steps. The heart rate function seems to work best at night and at times when I am not moving. When I do exercise, I have noticed that it often doesn’t register which might be due to perspiration or something else. I don’t climb many stairs but it has been accurate for the ones I have climbed except for one time when, out of the blue, it told me I had climbed 91 stairs that day. NOT! Fitbit’s website and App for tracking are nice and I have no complaints. The battery lasts me about 3 days between charging.
The bottom line is that it is a device that is perhaps worth the price I paid but it still doesn’t have enough functions to warrant me keeping it on my wrist long term. At least I don’t think so.
And that is what I see to be the biggest problem with Fitbit’s wearables at this time.
Should You Buy Fitbit Stock?
While they are the most popular fitness tracking company out there right now, not many people buy a second product from them. In fact, a large percentage of customers end up with their device long forgotten at the bottom of a drawer. Fitness trackers are fun for awhile but I think it is a MAJOR challenge to keep most people wearing one permanently.
And that is where the Apple Watch has tried to make its distinction.
In its IPO filing Fitbit mentioned Apple as a big obstacle on future horizons. They were honest with investors that the Apple Watch could put a big dent in their future sales. While the Apple Watch has initially buoyed the whole wearable industry (I bought my Fitbit because I was curious and won’t buy the Apple Watch until version 2), that will not last forever, Undoubtedly there will be winners and losers and chances are the Apple Watch will always outsell any competitor. That doesn’t mean the other players can’t make money but to me, it does mean I won’t be buying Fitbit’s stock.
Why buy a stock of a company that has significant competitors and absolutely must come out with top notch innovative products to just stay in business? That is the situation I believe Fitbit is in and I think the challenges ahead of them are immense. Definitely NOT the type of company I want to buy stock in.
Disclaimer: If you are wondering “should I buy Fitbit stock?”, please first consult a paid professional stock broker or financial analyst. Do not take the advice of this website without understanding that these are only my opinions and they are for entertainment purposes only!