Friday’s Headlines: Fitbit Has Its Worst Quarter As A Public Company
1. Fitbit stock fell in after-hours trading following its earnings report which showed that holiday sales declined more than 12% to the lowest fourth-quarter total for the company since it went public. Fitbit reported losses of $120.8 million, or $0.46 a share, on sales of $502.1 million, down from $571.2 million a year ago. Google parent company Alphabet agreed to acquire Fitbit for $7.35 a share in November, but the deal now faces an antitrust investigation from the federal government and possibly the EU too. Get the full earnings report here.
2. Tesla got approval from a German court on Thursday to continue to cut down forest near the capital Berlin to build its first European car and battery factory, in a defeat for local environmental activists. The court said in a statement it had rejected urgent applications to stop the land being cleared of trees from several environmental groups, adding its ruling was final. Tesla will now get its first European Gigafactory underway, having had great success with its Shanghai factory which opened last year. Read the full story here.
3. Israel-based Wix reported on Thursday a quarterly net profit of $0.39 a share, compared with $0.42 a year earlier. The company added a net 89,000 premium subscribers in the October-December period to reach 4.5 million paying customers, up 13% over a year earlier, and growing revenue 19% to $204.6 million. For 2020 Wix, which has seen its shares rise 27% so far this year after a 35% jump in 2019, expects revenue of $946 million to $956 million, up 24% to 26% from 2019. Read the complete report here.