Well, the analysts at Citron Research seem to think so. Fitbit Inc. (FIT) saw a massive surge yesterday after a long time when the stock climbed around 15% after-market. After a nasty two years during which the company lost a major chunk of its value, June has come as a breath of fresh air. The stock gained over 35% during the past one month. The jump on Monday came on the heels of the announcement of the global availability of the kids’ wearable device, the Fitbit Ace.
This was furthered by a report from Citron Research that said good times were ahead for Fitbit. The firm expects the stock to continue its improvement and even double by the end of the year. Citron has optimism in Fitbit’s healthcare initiatives and also in Fitbit’s potential as a takeover target.
Citron believes someday Google might acquire Fitbit
Fitbit has partnered with DexCom Inc. (DXCM) for glucose-monitoring devices and also with healthcare insurance provider United Healthcare. In addition to this, the company has partnered with Alphabet (GOOGL) subsidiary Google for AI and cloud services. Citron believes this partnership could turn into something more by Google eventually taking over Fitbit and giving it the clout to go up against Apple (AAPL). There is also optimism on the potential in the health technology space.
Fitbit also sees some life in its devices business with the sale of more than a million Versa smartwatches since mid-April, making it the company’s fastest-selling product ever. Perhaps this lift along with momentum in other areas will finally give Fitbit the ability to keep up with Garmin (GRMN) which has seen continuous profits and has good revenue diversification.
During its most recent quarter, Fitbit posted a revenue decline of 17% and a higher net loss while Garmin reported a 11% growth in sales with a net income of $129 million.
Most Popular
Important takeaways from Paychex’s (PAYX) Q2 2025 earnings report
Paychex Inc. (NASDAQ: PAYX), a leading provider of human resources and payroll services, reported better-than-expected revenue and profit for the second quarter of fiscal 2025, sending the stock higher soon
Lamb Weston’s (LW) challenges may not end soon, a few points to note
Shares of Lamb Weston Holdings, Inc. (NYSE: LW) turned red in mid-day trade on Friday. The stock has dropped 19% in the past one month. The company delivered disappointing results
CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%
Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss