What: Shares of activity tracker specialist Fitbit (NYSE:FIT) popped earlier this morning, with gains moderating to around 4% as of 1:23 p.m. EST, after the company disclosed two prominent stakeholders.
So what: In a pair of SEC filings, salesforce.com CEO Marc Benioff reported owning 5.3 million shares of Fitbit, which also represents about 5.3% of Fitbit's total 99.4 million shares outstanding. Fund heavyweight Vanguard Group also reported a 9.2% stake separately.
Now what: Those are two votes of confidence in Fitbit's prospects, particularly as the company is currently trading near lows, and Fitbit is preparing to announce fourth-quarter earnings results later this month on February 22. Fitbit shares have already lost half of their value year to date, and it's only early February. As the market has tanked, Fitbit has gotten caught up with other recent IPOs; but Fitbit's business is a little more stable than some of the other names that have been overhyped. Having a tech-savvy billionaire jumping in is a pretty strong vote that Fitbit's sell-off may be overdone.
Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool recommends Salesforce.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.