Tech Darlings Fitbit, Tesla Pounded Despite Strong Earnings
SAN FRANCISCO (KCBS) - Tech love is hard to come by on Wall Street these days.
A number of firms have posted big second quarters, Apple, Facebook and LinkedIn to just name a few, and have been hammered despite those results with investors jumping on specific details.
Such is the case for Tesla (TSLA) and Fitbit (FIT) Thursday.
Tesla topped earnings estimates, but the possibility of not quite hitting Elon Musks's original goal of 55,000 deliveries in 2015 has the stock tumbling.
Musk isn't going to be bothered by Wall Street's reaction, tweeting that he'd rather build great cars than meet quarterly sales targets.
Fitbit cruised past earnings expectations, with sales soaring higher from a year earlier, but the San Francisco startups stock is getting pasted.
There's not much apparent in the report fueling the selloff, with some analysts pointing to the stock's meteoric rise since its June IPO, resulting in some profit taking.
Fitbit withstood the Apple Watch debut in the second quarter, and is the clear market leader for wearable devices.
A Piper Jaffrey analyst note says a survey of millenials, athletes, women and teens found that one in four are interested in a fitness band.
Shares in Fitbit and Tesla were each tanking by double digits midway through the trading day.