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T3's Take 3: FitBit's Big Fat Flop


Today's financial recap and tomorrow's financial outlook.

Today on T3 Live

Techstart author Sean Udall initiated several trades today. This morning he closed out a position in Hortonworks (HDP) around $28.31, taking a 17% return. He then invested the proceeds into New Relic (NEWR) in anticipation for the company's earnings report on August 10. Sean also added a position in Qualys (QLYS), which dipped sharply today.

Click here to learn more about TechStrat

World Equity Markets

Major US indices closed down today, with the S&P 500 finishing down 0.8%.

The NASDAQ performed far worse with a 1.6% decline as investors shed risk. Biotech was notably weak, with the flagship IBB ETF dropped 4.3%.

The cybersecurity sector was also hit hard. Big names like Fireeye (FEYE), Palo Alto Networks (QLYS), and Cyber-Ark (CYBR) suffered big losses.

European markets traded lower as well today. The French CAC fell 0.1% , and the German DAX 0.44%. In Asian, while Japan's Nikkei managed to rally 0.24%, Chinese stocks fell on losses in the travel & leisure, real estate, and telecom sectors. The
Shanghai Composite dropped 0.8%, and the Hang Seng closed down 0.6%.

Momentums Hit Walls

Fitbit (FIT) released its first earnings report since becoming a public company. While the company boosted a strong earnings beat, the stock saw a double digit sell-off in after hours trading yesterday. Gross margins were weaker than anticipated, which was not acceptable given the extremely high expectations heading into the report. CEO James Park later also didn't reveal much information on the conference call, which hurt confidence. Fitbit shares fell 13.6% today.

Tesla (TSLA) shares closed down 8.9% after the company scaled back vehicle delivery forecasts for 2015. The company said it is having trouble perfecting the upcoming Model X' middle-row seats. The plunge was the stock's biggest single-day decline in 21 months.

Planet Fitness IPO

Planet Fitness entered its first day of trading under the ticker symbol PLNT. The company raised $216 million, giving it a market cap of about $1.6 billion. Shares opened at $16 but quickly sold off, hitting a low of $13.75 for the day. The stock managed pick itself back up and finished at $16 on the dot.

Friday's Financial Outlook

US economic data for tomorrow will include the highly-anticipated July NFP Report, the Baker Hughes rig count, and consumer credit.

Overseas economic data will feature German industrial production and trade balance, British trade balance, and Canada's employment report.

Brookfield Asset Management (BAM), CST Brands (CST) Groupon (GRPN), Hershey Foods (HSY), and (JD) will report earnings before the open tomorrow. 

Berkshire Hathaway (BRK.A) will release its earnings after the close.
No positions in stocks mentioned.
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