Fitbit, Inc. (NYSE:FIT)
Who can deny that we Americans as well as a large percentage of developed Nations in the world love our gadgets. The things that tell us things about ourselves, whether it be fitness related, health related, navigational related and so on. So it makes sense that the newest wearable guy on the block, Fitbit, should see a welcomed response to its recent IPO listing on the New York Stock Exchange. At first glance, some might say they compete against such names as the formidable Apple (Nasdaq:AAPL) brand which manufactures not only computers, laptops, tablets, I-Pods, I-Pads, cell phones, internet wrist watch phones but also Fitness gadgets as well. However, unlike Apple, Fitbit specializes in basically one main area and that is Fitness. Its products can inform owners of daily steps, calories burned, distance traveled, floors climbed, and active minutes and display real-time feedback. It also comes in at a much lower price point than Apple so it serves a population that may find it more affordable than an Apple product.
Analysts On FIT
Shares of Fitbit went public on June 18, 2015 at $20 per share and quickly doubled after trading only three days. Then just yesterday, Tuesday June 30th, the shares got a very positive report by RBC Capital Markets when they initiated coverage with an outperform rating and a price target of $45 per share. While some people may think that this is just another fad that will fade, expecting the shares to come back down to earth and trade much lower. For now, investors are hungry for returns in an unsettled and choppy stock market and Fitbit seems to “fit” just right when you look at a chart of its stock price. According to Mark Sue, the analyst referenced above, Fitbit is “a tech standard for fitness and health.” Sue also said that the fitness and health device market is “in the early growth stages” and that Fitbit is the clear market leader. Host Jim Cramer of the Mad Money show on CNBC, who is usually a proponent of such niche stocks, has stated that while he loves the stock he will not chase it at current prices and is eager to buy on pullbacks.
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Aging Population and Awareness
As a nation of an aging population , Americans seem more interested in their health and well-being now more than ever before. This makes Fitbit products just what many of their doctors may have in order the next time they visit for a routine check-up. Doctors may view them in a positive light given all the information they can give a patient. As mentioned above, their wearable products can track so much important informational data about a person’s daily lifestyle which contributes to their overall health and potential lifespan. I, for one, would love to know how many calories I’ve burned, the distance I’ve walked, steps I’ve taken, etc in the course of my daily activities. It seems to go along with being well-informed and aware in my life.
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FIT Chart
Fitbit, Inc. Company Profile
Fitbit Inc. provides wearable fitness-tracking devices worldwide. The company makes both wrist bands and clippable devices that monitor a users fitness activity by tracking the calories burned or distance covered. It manufactures and markets products that track peoples health and fitness activities, including Fitbit Zip, a wireless tracker that allows users to track daily activity statistics, such as steps, distance, calories burned, and active minutes; Fitbit One, a clippable wireless tracker, which tracks stairs climbed and sleep; Fitbit Flex, a wristband-style tracker that tracks steps, distance, calories burned, active minutes, and sleep; and Fitbit Charge, a wireless activity and sleep wristband, which tracks steps, distance, calories burned, active minutes, floors climbed, and sleep. The company also provides Fitbit Charge HR, a wireless heart rate and activity wristband; Fitbit Surge, a fitness watch that consists of GPS watch, heart rate tracker, activity tracker, and smartwatch; and Fitbit Aria, a Wi-Fi connected scale that tracks weight, body fat percentage, and body mass index. In addition, it sells various accessories, such as bands and clips, charging cables, and Fitbit apparel. Fitbit Inc. sells its products primarily through retailers and distributors. The company was formerly known as Healthy Metrics Research, Inc. and changed its name to Fitbit, Inc. in October 2007. Fitbit, Inc. was founded in 2007 and is headquartered in San Francisco, California. Yahoo! Finance
