The MyFiziq Ltd (ASX: MYQ) share price fell from grace today after being one of the best performers on the market in recent weeks.
In early trade the body contour and image tracking technology company's shares fell as much as 21.5% before recovering slightly. At the time of writing they are down 14% to 62 cents.
Despite this sizeable decline, MyFiziq's shares are still up almost 200% in just the last 10 days.
Why are its shares lower today?
With no news out of the company this morning, I feel today's decline is likely to be a case of profit taking considering its incredible share price rise this month.
Investors have been fighting to get hold of its shares, believing it has the potential to be another Catapult Group International Ltd (ASX: CAT).
MyFiziq's platform allows its users to create an avatar through a digital device which is then used to deliver the user's dimensions via 14,000 data points. Once this is complete users can use their mobile phone to track personal progress towards their health goals over time.
Ultimately, management believes this creates a comprehensive approach to measuring, tracking, and observing changes to the user's body shape and dimension over time without the need for measuring tape.
While the technology is certainly innovative and has a large addressable market, its market cap of approximately $81 million means there's already a significant amount of growth built into its shares.
I would suggest investors keep MyFiziq on their watch list until it is generating revenue growth that justifies the current valuation.
In the meantime, I think investors ought to consider Altium Limited (ASX: ALU). The software-as-a-service company aims to almost double its revenue to US$200 million by FY 2020.
