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Fitbit 4Q18 results -4


Fitbit has released its results for the fourth quarter:

What I see here is that Fitbit is having to cut prices to sell devices.  Gross margins were the lowest in recent memory, and partnerships won't help nearly enough, as management expects Health Solutions revenue to grow to $100M this year.  The company took what appears to have been its best shots in 2018 and still wound up with negative $12M in free cash flow, excluding a big tax refund.

That said, the company does appear to be doing a good job keeping a lid on costs as it tries to defend or even regrow lost market share.  FIT shares are back down below the $6 mark that I've cited all along, and I don't foresee a whole lot more downside.  However, my original of hope of Fitbit out-competing in smart watches with the still attractive technology it acquired from Pebble is all but dead.  We've known that for a while now, and I think enough has been said here.