The company said it sold 6.5 million devices in the fourth quarter, and that revenue would come in at $572 million to $580 million, well below its previous guidance range of $725 million to $750 million.
And while shareholders have been punished with a 75% plunge in the stock during 2016, there's one group that has been cleaning up: Short sellers. They amassed a massive position in the stock during the early part of January, increasing their interest by 31% up to $424 million, according to data provided by S3 Partners.
Research conducted by the firm shows that while short sellers have incurred $505,000 in costs associated with borrowing shares to sell them short, they booked a mark-to-market profit of $73.5 million as of Monday. That's an 18% return in just under a month, and in addition to the 131% short sellers made on the stock in 2016, according to S3.
While short sellers have been in control, S3 warns, "It might not take much more than a hug to start a true short squeeze in Fitbit."
