Business journalists learn early: a company, its products, and its stock are three distinct things. It’s also a truism that stocks rise on speculation and drop on news — even good news. So it’s not entirely surprising that Fitbit had a great quarter but its stock immediately lost 10 percent of its value.
Analysts had expected profit of 8 cents per share on $319 million in revenue; Fitbit delivered 10 cents, on $400 million. The company sold 4.5 million devices, as opposed to 1.7 million a year earlier. Profit margins are 47 percent. For the third quarter, the company projects sales of $335 million to $365 million, and profit of 7 to 10 cents per quarter.
CNBC quoted one analyst as saying the third quarter projection was a little low, and another as saying that the company had some supply constraints, even as it gained market share.
Don’t cry too hard; the stock is trading above $50/share. Its IPO was priced at $20, opened at $30. and has been climbing since.
Business journalists learn something else: there’s no pleasing everyone.