Chowdhry: Fitbit IPO Is 'Peak' For Company, Take Profits Now

In a report published Wednesday, Global Equities Research analyst Trip Chowdhry recommended fundamental investors to “take profits” on Fitbit Inc FIT, as it appears to be a “declining asset business.”

Fitbit’s stock seems “hyper-inflated” and “IPO marks the peak,” Chowdhry said, adding that the stock is no different than Box Inc BOX, Alibaba Group Holding Ltd BABA, Groupon Inc GRPN, GoPro Inc GPRO and Zynga Inc ZNGA.

In the report Global Equities Research noted:

• “Remember “BABA is taking over USA and is going to kill AMZN”…AMZN is all time high
• Remember “ZNGA is revolutionizing the gaming industry, going to kill EA (Electronics Arts)”… EA is all time high
• Remember “BOX is going to kill Sharepoint”… BOX is self destructing and probably going to be a $5 stock
• FIT is probably going to be another one in above sequel…Fundamentals are absent”

Fitbit is in direct competition with Xiaomi’s $15 Band. Pricing for Fitbit’s devices are between $59 and $250, and is “going to collapse.” The market is “extremely limited for single purpose, single occasion and single application device, and being successful is extremely unlikely,” Chowdhry wrote.