Emma Asma Cornwall
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Emma Asma Cornwall in Gainers & Losers,

Fitbit is being savaged for no reason

The maker of fitness and health trackers Fitbit reported its first-quarter earnings on Wednesday, and investors immediately slammed its shares for a second-quarter earnings forecast that wasn't as bullish as analysts had been predicting. This even though the earnings report was full of the kind of news investors are usually grateful to hear: Revenue for the quarter surged 50 percent to $505.4 million, earnings per share of 10 cents came in well above analysts' predictions and the company upped its guidance on 2016 profits, according to Inc.com.

The first quarter offered even more encouraging omens, which CEO James Park sought to emphasize on a call with analysts and press. Sales of the Blaze smartwatch and Alta tracker, both introduced in the quarter, accounted for almost 50 percent of the company's revenues. Park noted that the company has sold more than 1 million Blaze units at $199 apiece "despite many casual observers' skepticism."

Well, looks like traders overreacted on minor weaknesses of Fitbit report, and after such a huge drop as 14 per cent I'm thinking about going long, especially considering technical picture.