Stocks in wearable technology stocks have largely failed to live up to excessively high investor expectations according to a recent institutional client briefing from Japan-based investment manager, McQuaid Group.

Citing stocks of fitness tracker maker, Fitbit and wearable action-camera company GoPro, the firm said that both face an almost insurmountable struggle to turn their fortunes around.

“The trouble with these stocks is that investors bet heavily on the companies leading their particular niches,” said Dan Lucas, technology research analyst at McQuaid Group.

“GoPro has found that its dominance of the action-camera market is far from unassailable while Fitbit’s popularity with so-called millennials leading active lifestyles was waned in the face of competition from rivals like Apple or others with devices that measure performance in more usable units like calories rather than ‘steps’.”

Since coming to market last year, Fitbit’s stock has plunged 42% while GoPro’s has slid a whopping 68% resulting in some sobering losses for investors who, in the former’s case, over-estimated the indispensability of a fitness tracker. Of the 15 million trackers sold so far, only 50% are actually in active, regular use.

GoPro has faced stiff competition from, among others, Sony and Xiaomi both of whom make comparable products that sell at a noticeable discount to its devices.

“Both companies are due to report first quarter earnings this week and although both may beat on the top and bottom lines, it will be their guidance for the current quarter that will dictate whether or not their stocks slide further. We’re not optimistic,” said Lucas.

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