[On :freetrade:] Fitbit ⌚️ $FIT

Fitbit, like GoPro, is exploring a sale. It’s a tough business when Apple entered the scene and now makes the most successful and popular smartwatch and you’re not in niche markets like Garmin.

You can get a decent deal on Fitbit Charge 3, Blaze, and Fitbit Alta HR in some places.

Apple Watch 3 is offered at $199.

Fitbit’s revenue fell sharply in 2017 from 2.2 billion to 1.6 billion, and then remained flatish at $1.5 billion on a TTM basis.

Apple Watch 3 was released in 2017.

Fitbit are competing with $AAPL which has very low cost of capital—it can borrow money at very low rates, use massive cash reserves from iPhone sales, and pour that cash into Watch R&D.

Fitbit:

  • Hyper growth - no more❌
  • Product differentiation - no more :x:
  • Economies of scale :x:
  • Network effects :x:
  • Good margins :x:
  • Recognisable brand :white_check_mark:
  • Fan base :white_check_mark:

From Yahoo! Finance:

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Google acquires Fitbit

Edit: $7.35 per share, in cash

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This news as a Fitbit user I’m glad to hear, especially if it means Fitbit Pay (potentially integrates with GooglePay) becomes more widespread. Only reason holding me back from upgrading to Versa is lack of Fitbit Pay support :watch:

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Interesting deal – $FIT has made a strong recovery in the last few months.

Makes sense in an increasingly competitive market dominated by Apple Watch.

As a user of Fitbit, I’m happy there’s a deal. It assures me I’m not ending up the same way I did as a Pebble user, which I supported from the start.

I believe the resting heart rate calculation and sleep tracking of Fitbit are better than the same on the Apple Watch.

My previous Fitbit broke, so I plan to buy a new one on Black Friday. :shopping:

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Get an Apple Watch :apple: You know you want to

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What does this mean for anyone who holds Fitbit shares?

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FT:

Google’s offer of $7.35 a share for Fitbit compares with its $20 initial public offering price in June 2015. After closing at a high of $47.49 soon after the IPO, Fitbit’s shares have languished during the past two years as it has attempted to refocus its business away from low-cost fitness trackers towards smartwatches amid intensifying competition from Apple’s Watch.

“This is a pure data play,” said Nilesh Chandra, a partner focused on healthcare strategy at PA Consulting, noting tech companies’ broader push into the health industry.

Source - https://www.ft.com/content/f6a710b4-fca5-11e9-a354-36acbbb0d9b6

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all them $FIT holders will have to exercise more :basketball_woman: :woman_playing_handball: :watch: