Please ensure Javascript is enabled for purposes of website accessibility

Why Fitbit Shares Popped This Morning

By Evan Niu, CFA – Feb 10, 2016 at 1:13PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Fitbit reports two new prominent stakeholders buying in as shares trade near lows.

What: Shares of activity tracker specialist Fitbit (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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Fitbit, Inc. Stock Quote
Fitbit, Inc.
FIT

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
326%
 
S&P 500 Returns
102%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/02/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.