What happened

Wearable tech specialist Fitbit (NYSE:FIT) underperformed the market last month by shedding 11%, compared with a 0.4% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.

^SPX Chart

^SPX data by YCharts.

The slump reversed Fitbit's earlier gains in the year and put the stock back in negative territory so far in 2018.

So what

Investors haven't been thrilled to see slumping sales and reduced profitability from Fitbit this year. Revenue through the first half of 2018 was down 16%, as net losses rose to $199 million, or $0.83 per share, from $118 million, or $0.52 per share, in the year-ago period.

A man interacts with his fitness tracker.

Image source: Getty Images.

Now what

Fitbit's broader results will depend on how well its latest lineup of products is received by consumers this holiday season. Executives have high hopes for the Charge 3 device, for example, which represents their most aggressive move yet into the premium segment of the wearable niche.

Over the short term, the stock will likely keep swinging in response to developing news on how well that product is doing during the shopping crush in November and December. Further out, for Fitbit to succeed, it needs to demonstrate that it can win market share in highly competitive areas like smartwatches while reducing its reliance on just a handful of product releases to deliver most of its sales gains each year.

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