Stocks in fitness gadget firm Fitbit (NYSE:FIT) have pretty much recovered from a shaky February. Fitbit stocks reached $5.45 when markets opened on March 13th, which marks a rise of 14.49% from a February 27th plummet of over -13% in after-hours trading on the news of poor Q4 2017 reports.
Today’s positive performance comes on the back of the two company announcements. First, it is to release the Fitbit Ace, a smart watch aimed at kids with a cheaper price tag than its usual products. In keeping with the company’s product portfolio so far, the Fitbit Ace is also a fitness tracker. One standout feature is that it will allow parents to monitor their kids’ activity levels, all the while knowing that others won’t know the whereabouts of their children due to its lack of a GPS device.
>> Fitbit Stocks Plummet After Hours
Secondly, the company is releasing the Fitbit Versa, a smartwatch and fitness companion capable of 24-hour heart-rate tracking, sleep tracking, music playback, an all-new female health system which provides menstrual cycle feedback, and a four-day battery life. Fitbit ambassador Harley Pasternak said of the release: “I encourage all my clients to track their activity so they can understand how it plays a role in their overall health and fitness journey.” However, the product isn’t vastly superior to its predecessor, the Fitbit Ionic. The Versa is the lightest watch on the US market and has a nicer screen than the Ionic, but it shares many of the same feedback perks, as well as contactless payment and music playback.
>> Avinger Inc. One Step Closer to Being Listed on the Nasdaq Capital Market
Facing competition from Apple and Samsung in the tough wearable technology market, Fitbit is aiming to establish itself a more serious healthcare assistant following its acquisition of Twine Health. This could allow Fitbit’s technology to provide feedback to patients with conditions such as diabetes while securing a corner of the market which Apple and Samsung aren’t currently looming over. The issue with today’s news is that they have released a smartwatch which yet again aims to directly compete with the two industry giants. It might work, but it’s hard to tell for now.
In any case, Fitbit shares are performing well today, so shareholders can rejoice in the fact that 2018 may yet hold some promise for the company.
Featured image: engadget
