Active Stocks: Fitbit Inc [NYSE: FIT] was a huge gainer in Monday’s trading session. The stock closed the day with gains of 30.86%. The last time I covered this stock it was trading at $3.49. Going by yesterday’s closing price, this represents gains of 61%. In the article titled, “Stocks to watch: Fitbit (FIT) corrects as the market absorbs rate cut news, company announces earnings”, I wrote that the stock had significant potential for growth going into the future.
It was noted that, based on its strong quarterly results, FIT had growth potential even though the stock was in a correction at the time. The article stated that,
“The company’s results are largely positive, and paint a picture of growth. It reported an EPS loss of $0.14 against analysts’ expectation of $0.18. Not only did it beat expectations, but it also represents a significant improvement from last year when it recorded an EPS loss of around $0.22. Revenue numbers also rose slightly compared to a year ago. In Q2, its revenues stood at around $313.56 million, as compared to $299.34 million last year.”
Shifting focus to yesterday’s performance, FIT’s gains followed news that Google was eyeing the company. Reuters reported that, Alphabet Inc was in buyout talks with Fitbit. If it goes through, such a deal could be Google’s entry point into the wearables market. Up to this point, Fitbit has largely maintained an in-house interface for its wearables, and users and investors will be waiting to see what will happen if a buyout happens.
Looking at the price action and daily chart above, FIT had a very active day in Monday’s session. The stock was quite volatile. It opened the day at $4.29, and traded between $4.28 and $6.09 before closing the day at $5.64. The volume was very high yesterday and FIT traded 65,027,423 shares.
In regards to the U.S. markets, yesterday the S&P 500 closed at a new record high and the NASDAQ is trading right near its all time high with the DOW right behind it. Today Wall Street is expecting to hear on home prices and consumer confidence numbers and pending home sales.