NEW YORK (TheStreet) -- Shares of FitBit (FIT) were plunging by 32.86% to $8.60 on heavy trading volume late Thursday afternoon, due to its 2016 third quarter revenue miss and downbeat guidance for the holiday season and full year. The financial report was released after Wednesday's closing bell.
The fitness tracker manufacturer blamed the lower-than-expected outlook partially on manufacturing problems with its new Flex 2 device. The company estimates it will miss out on about $50 million in revenue because it won't be able to meet Flex 2 demand.
This outlook is a "huge problem" for FitBit, considering it makes about 40% of its revenue in the fourth quarter, noted CNBC's Melissa Lee on Thursday afternoon's "Power Lunch."
"This is starting to feel a little bit like the Jane Fonda workout," CNBC's Michelle Caruso Cabrera said in response. "It's over."
"The fad is over. The fad is done," CNBC's Tyler Mathisen said in agreement.
People get on a health kick after gaining weight over the holidays, use the FitBit tracker for a month and then forget about it, CNBC's Brian Sullivan said, noting that he used to use one.
These comments were similar to TheStreet's Jim Cramer's comments on FitBit from earlier today on CNBC's "Squawk on the Street."
"I think that everybody who wants a FitBit has one. I just think it's done," Cramer said.
FitBit received a couple of downgrades this morning. Bank of America/Merrill Lynch reduced its rating on the stock to "underperform" from "buy," while SunTrust cut the stock's rating to "hold" from "buy."