Before the market open, Fitbit (FIT) provided preliminary Q4 numbers and an early look into 2017. The numbers provided were so bad that the stock only down 13% is surprising. The stock hit a new low at $5.89. Fitbit traded at all-time lows prior to the updated guidance so the market wasn't exactly expecting a stellar holiday season. After the app ranked high on iOS downloads during the holiday period, the hope was for a solid quarter and possibly one where analyst estimates were still on target. The company didn't deliver. The key metrics are the 2017 guidance. 2017 revenue of $1.5 to $1.7 billionnet loss per share of ($0.22) to ($0.44)free cash flow of negative $50 to $100 million long-term gross margin target of 45% versus previous 50% target. A couple of key points are that revenues were targeted at $2.3 billion so the company cut over 30% off guidance. The stock is now worth roughly $1.4 billion while sales are targeted at $1.6 billon. Definitely in the value equation area, if not for the expected losses. Fitbit claims the engaged community sits at 23.2 million active users suggesting a vibrant group. The bigger issue appears creating products that warrant regular upgrades. Unlike other investors, I don't see this as a fad. Corporations are increasingly using fitness trackers to encourage and reward employees to stay active in order to reduce health costs. The data appears to prove that better fitness trackers are needed to ensure these employees are actually moving and not just sitting on the touch moving the tracker in their hand.The stock isn't investable at these levels. The previous suggestion that investors should watch the stock remains. Fitbit remains at the forefront of the wearable market and could be a hit product away from huge stock gains or another misstep away from ultimate failure. Keep lurking, but don't own the stock. More research:Fitbit: Still Lurking Disclosure: No position