Fitbit (NYSE: FIT) is stuck in a range of between $5 - $6 in the last year. Its top at $7.79 in June did not last. And Apple’s latest smartwatch will put competitive pressure against the company’s latest offerings. The days of Fitbit running as a standalone are running out.
Fitbit stock fell 6% last week after Apple announced innovative features in the Watch 4. This includes a 30% larger screen, a UI redesign, better speaker, a dual-core 64-bit processor and a better GPU. The fitness and health features are greatly improved. The device now detects swimming activity, knows if the user fell and delivers an alert that could make an emergency call. The Apple Watch also warns the user of irregular heart rhythm. To top it off, the digital crown takes electrocardiogram readings.
Fitbit still has one advantage: its top-end models are still less expensive than Apple Watch and does not require the user to own an iPhone. Still, Apple’s electrocardiogram reader and irregular heart rhythm feature both earned FDA clearance.
Takeaway
As FIT stock gets set for a re-test of yearly lows toward the $4.50 - $5.50 range, speculators could bet on the company going private or getting bought out. The stock trades at 2 times book and 0.9 times sales.
