Fitbit erases losses after report says smartwatches not on tariff list

Markets Insider

• Fitbit shares erased their losses after a Bloomberg report said the US won’t include smartwatches in the next round of tariffs.
• The Asia-Pacific market was a bright spot for the company.
• Watch Fitbit trade in real time here.

Fitbit shares erased their losses after Bloomberg reported the US won’t include smartwatches on the list of $200 billion worth of Chinese goods that will be hit with upcoming tariffs. Shares were down 3% before the news. 

The proposed tariffs could have potentially lifted prices of those products, Apple warned in a letter sent to the government earlier in September. The tech giant said that “all tariffs ultimately show up as a tax on U.S. consumers” and that they will “increase the cost of Apple products that our customers have come to rely on in their daily lives.”

The Asia-Pacific market was a bright spot for the company, with the regional revenue up 66% year over year,  according to CNBC. Sales in many other regions all faced declines, including the Middle East and Africa, where revenue plummeted 39% year over year, and the US, where revenue dropped 8%,

Tariffs on smartwatches and fitness trackers would hit Fitbit particularly hard. In August, Fitbit posted a loss of $0.22 a share for second quarter, topping the Wall Street consensus of a $0.24 loss per share, according to Reuters data. The company also said revenues totaled $299.3 million, above the $285.4 million that was expected.

Shares of Fitbit are down 8% this year.

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Get the latest Fitbit stock price here.