Update on Fitbit and TWO AskMeAnything’s

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Fitbit is up 13% today after a Citigroup analyst published analysis about Fitbit being set-up to for a good quarter. I agree since we know that $FIT shipped more than 1 million Fitbit Blaze and 1 million Fitbit Alta devices in the first month that they were available, which exceeded internal Fitbit sales forecasts. Based on a Mean Suggested Retail Price (MSRP) of $199.95 for the Fitbit Blaze and $129.95 for the Fitbit Alta, those shipment figures equate to approximately $330 million in total sales in only one month. Given that management’s guidance for Q1 2016’s sales was $420 to $440 million, and that sales of the Fitbit Alta and Blaze surpassed internal sales estimates, $FIT seems to be well on track to surpass its initial guidance (and analysts’ consensus estimates for $432.7 million in sales) in Q1 2016 if one assumes that all else has gone well during the quarter.

The Fitbit August call options we bought yesterday are up 50%. I wouldn’t be shocked to see the stock trade down again at some point for a short while, but I am going to hold my FIT common and call options steady for now.

I notice that some bears and shorts are starting to throw in the towel and that might very well set this market up for at least a little bit of a pullback, something we haven’t seen in two months.

Steady as she goes for now.