Troubled consumer electronics wearables company Fitbit Inc. (NYSE: FIT) has a short interest of over 39 million shares, which is an extraordinarily large 25% of its float. These figures cover the two-week period that ended April 28 and are an example of the extreme skepticism about the company’s future.

Fitbit recently posted earnings that were better than expected. The company had revenue of $299 million and a GAAP net loss per share of $0.27 for its first quarter of 2017. This compared to a profit of $0.05 a share and revenue of $504 million in the same quarter a year ago. So, despite what Wall Street viewed as progress, Fitbit still has major challenges. Among these is the fact that Apple is its largest competitor.

The rally in Fitbit shares has not lifted it much above its 52-week low of $5.31. Shares trade at $6.24, well below the 52-week high of $17.18. The stock is down 79% over the past two years.

CNBC recently reported:

Fitbit, which has consistently been at the top in terms of market share, fell dramatically. The company, which makes products such as the Flex 2 fitness tracker and Blaze smartwatch, shipped 2.9 million devices in the first quarter, down 35 percent from the year before. Meanwhile, its market share slipped to 13.2 percent, down from 24.7 percent in the first quarter of 2016. Fitbit’s official numbers showed that it in fact shipped 3 million devices in the first quarter. This still leaves it in third place.

Investors who have sold Fitbit shares short continue to have a case.

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