Fitbit Shares Below IPO Price

EPA -VALERIE CAVINESS

Fitbit shares tumble below IPO price - Shares of Fitbit dipped below $20 for the first time since the maker of fitness trackers launched its initial public offering last July.

As of midday trading Monday, shares of Fitbit sunk more than 11% to $19.07. In 2016, Fitbit’s stock price has plunged 36%.

The big reason for Fitbit’s New Year slump is the announcement of a smartwatch, Fitbit Blaze, which will launch in March for $199.99. The smartwatch includes heart-rate tracking, support for text notifications and connected GPS.

However, investors are concerned the Blaze doesn’t go far enough in matching up to smartwatch rivals including the Apple Watch, says S&P Capital IQ analyst Angelo Zino in a note to investors sent after Blaze’s reveal.

“The price point may prove to be too high for a device that will not offer access to third-party apps, unlike other smartwatches,” says Zino.