They bought the Pebble assets for <$40 million. The engineering knowledge and brand awareness was a steal and must-do, even for a struggling company. Remember,

They bought the Pebble assets for <$40 million. The engineering knowledge and brand awareness was a steal and must-do, even for a struggling company. Remember, they still did $500 million in revenue in Q4. Fitbit and the entire wearable industry is in a similar position to Pandora and Twitter. There's a massive need to re-adjust expectations. You can build a very successful music streaming business, social communication company, and wearable manufacturing company... if you gauge the size of your market correctly. Guess wrong and Expenses > Revenues = panic (unless you've got Uber's pocketbook).