Three Fitbits laying side by side on a black surface

According to an article by Angelica LaVito at CNBC, today brokerage and investment banking firm Stifel downgraded fitness tracker company Fitbit's stock rating to "sell," causing shares of the company to plunge as much as approximately 8.5 percent.

This rating has officially dragged Fitbit's year-to-date loss to around 15.5 percent — not much of a surprise considering the performance of its products in the past handful of months. It seems fitness trackers are struggling to stay afloat on the ever-growing sea of smart watches, especially since Apple Watch has recently made great strides in regards to health tracking.

Jim Duffy, analyst at Stifel, shared his thoughts on Fitbit's recent lack of profitability in a note:

The franchise and customer database does have strategic value and the balance sheet can sustain cash burn through 2018, but absent a change in direction and sudden acceleration in health care system revenue contribution, we see shares lacking a catalyst (without profits, not even corporate tax reform).

However, LaVito points out that there is still hope for the company in the long-term, stating that according to FactSet, the company still currently has five buy ratings and seven hold calls.

Thoughts?

Do you believe a lack of innovation has led to Fitbit's downfall? Give us your two cents in the comments.