Fitbit shares drop after disappointing earnings report

Only two months after Fitbit's surprising IPO, the company saw a drop in its gross margins for the second quarter of the year.

In the wake of the earnings report, the first one following its IPO, the company's shares dipped by 14 percent, according to a Bloomberg article.

Fitbit said it sold 4.5 million devices in the second quarter of 2015, but gross margin slid to 47 percent, compared to 51 percent a year earlier.

The not-so-great earnings news also comes on the heels of legal woes for Fitbit. The company is being accused by competitor Jawbone of employee poaching and alleged intellectual theft by newly hired former Jawbone staffers.

However, CEO James Park said the mixed earnings would not stall Fitbit's plans to boost spending on research and development. Article

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