Shares of Fitbit (NYSE:FIT) jumped on Wednesday. The stock rose as much as 9.3%, but finished the trading day up 7%.
The increase in the fitness tracker company's stock price came just before its third-quarter earnings release, which occurred after market close on Wednesday.
Some of the stock's gain on Wednesday may have been due to investors making last-minute bets that the company would beat expectations when it reported third-quarter results. But the primary driver for Fitbit's stock was likely an overall gain in the stock market, especially for high-growth tech stocks.
Gains in the tech sector were evidenced by a 2% gain in the tech-heavy Nasdaq Composite. Though Facebook's solid earnings may have helped spark optimism for other tech stocks, the gain also simply represented a rebound. The Nasdaq Composite declined about 9% in October, even when including Wednesday's rise.
For what it's worth, investors who bought Fitbit on Wednesday appear to have made out well. The stock is up 10% in after-hours trading as of 5:29 p.m. EDT, following a quarterly update that featured better-than-expected revenue and earnings per share.
In its third-quarter update, Fitbit reaffirmed its full-year revenue guidance for $1.5 billion. In addition, the company guided for fourth-quarter revenue to be "greater than $560 million, with device sales down and a higher average selling price."
Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Facebook and Fitbit. The Motley Fool has the following options: short November 2018 $155 calls on Facebook and long November 2018 $135 puts on Facebook. The Motley Fool has a disclosure policy.