The stock market quickly got back to its feet after a dramatic Wednesday.
As companies are now releasing their financial reports, and it seems that
Shopify keeps moving higher
Shopify shares increased to 10% after the e-commerce company reported its growth in the second quarter of 2019. This revenue is 48% higher than their report years ago and when the adjusted net income increased to over six-fold for the same period.
Shopify aims to help entrepreneurs both big and small who are seeking online presence for their businesses to have the tools they need to succeed. The Shopify Fulfillment Network helps clients cut costs. Shopify Plus, on the other hand, provides assistance and support in managing some organizational business issues.
Aside from that, Shopify has 18 languages making is a global 3-commerce power that people from around the globe can use. They also have the new Shopify Capital division with extended credit so that merchants can have financial liquidity to help them operate effectively. While some tech companies are doing well others aren’t having the same luck.
Fitbit takes a hit
While some companies keep increasing their sales, Fitbit is on the other side of the spectrum as its stock plunged 19%. The creators of the wearable fitness device failed in attracting more customers for its Versa Lite product line thus caused the decision to make some cuts for their yearly budget.
This is just the tip of the iceberg. All in all, Fitbit is still competitive in the market with a 31% increase in the number of devices they sold for the second quarter of 2019. This contributed to its 5% increase in revenue. Fitbit also saw a 56% increase in unit sales every year.
However, these increases cannot compensate for Fitbit’s weaknesses in other areas. Smartwatch sales saw a 7% decrease in unit terms and the average selling price for all the products decreased by 19%. The future isn’t bright for Fitbit especially with the wearable declining to 10-15% in the future.
Fitbit is the pioneer company when it comes to wearable tech but clearly, they are having a difficult time keeping their customers and attracting new ones. It’s becoming harder for them to capitalize on the very thing they became first known for. Fitbit must think of something fast to turn its revenue around.