Fitbit (FIT) investors seem to be over the fitness craze as the release of its latest quarterly results Wednesday evening sent the stock tumbling more than 30% Thursday afternoon. Fitbit reported weak revenue for the third quarter and gave a downbeat outlook for the holiday quarter, leading several research firms to downgrade the stock. Bank of America/Merrill Lynch slashed its rating two levels to "Underperform" from "Buy" while lowering its price target to $9 from $24. SunTrust also cut its rating on the stock to "Hold" from "Buy" and its price target to $10 from $17.
Shares of Action Alerts PLUS holding Facebook (FB) also took a tumble Thursday following its Wednesday afternoon earnings release. The social media company beat analysts' top- and bottom-line expectations for the quarter, but said that ad revenue growth would slow significantly next year as ad load, the amount of advertisements Facebook can fit on your screen without disrupting the user experience, begins to reach its peak. Facebook shares were down nearly 6% Thursday afternoon after experiencing a similar dip in after-hours trading the day before.
Meanwhile, shares of Whole Foods (WFM) were climbing Thursday following the release of the company's latest results. The grocer reported in-line revenue while topping earnings expectations for its fiscal fourth quarter. But while the results were slightly better than expected, the stock was up less than 1% Thursday afternoon as Real Money's Jim Cramer advised investors not to "go nuts" about this stock as the quarter was only OK, but not great.
American International Group (AIG) stock was falling Thursday after the company's third-quarter financials were released. The insurer reported operating income of $1.00 per share, missing consensus estimates of $1.21. On the bright side, earnings were up 92.3% year over year. Pretax operating income also increased 23%, year over year, to $729 million, driven by higher returns on alternative investment income.