This Means Fitbit Stock is Going to Soar
At a time when oil prices, the Bank of Japan, and the U.S. Fed are going to strongly affect the stock markets, Fitbit Inc (NYSE: FIT) is one stock that will trade on the back of its strong fundamentals. There are many surprises lined up for the next few weeks, and Fitbit stock shall continue to be in limelight.
Fitbit, the fitness-tracking device specialist, launched two new products early this month: the “Charge 2” and the “Flex 2.” The products have received good reviews so far, and will soon hit the shelves of retailers across the globe.
The new launches are in addition to Fitbit’s formidable product lineup of the “Alta” fitness bracelet and the “Blaze” smartwatch, which were introduced this year. FIT stock had jumped about nine percent last week to cross the $16.00 level, and it is expected to go higher on the back of the strong demand for its new product launches.
In its “iPhone 7” launch event on September 7, Apple Inc. (NASDAQ: AAPL) had also announced the “Apple Watch Series 2.” However, the new Apple smartwatch is unlikely to pose any threat to the market dominance of Fitbit. There have been reports that Apple Watch does not have the key activity trackers that fitness enthusiasts expect. (Source: “Apple Watch 2 doesn’t track elevation, and other stuff fitness nerds will want to know,” The Verge, September 18, 2016.)
Moreover, most Fitbit products come in a price range of $80.00-$170.00, which makes them very affordable. The Apple Watch Series 2 starts at $369.00, which is a major deterrent to those who just want simple solutions to track their fitness activities.
Therefore, Fitbit’s attractive product range at unbeatable prices is likely to help the company maintain its lead in the wearables industry, which is expected to grow in double digits. According to a report by IDC Research, Inc., the market for wearable devices will experience a compound annual growth rate of 20.3%, culminating 213.6 million units shipped in 2020. (Source: “IDC Forecasts Wearables Shipments to Reach 213.6 Million Units Worldwide in 2020 with Watches and Wristbands Driving Volume While Clothing and Eyewear Gain Traction,” IDC, June 15, 2016.)
Fitbit is a strong brand in fitness trackers and, as its products hit global markets, investors would look forward to the sales numbers and customer reviews ahead of the quarterly results. Fitbit’s focus on the high-growth Asian economies that are posting good sales is likely to keep the Fitbit stock buoyant.