In what is being considered to be a huge debut for fitness tracker maker Fitbit which got listed for trading today, shares of the company surged by close to 50 percent in intra-day trading today. The company which priced its shares at $20 was able to raise close to $730 million which valued the company at $4.1 billion.
Fitbit Inc. makes devices that can be worn on the wrist or clipped to clothing. They track steps taken, calories burned and other data and can be synced up with smartphones. The company also sells a Wi-Fi enabled scale that tracks body mass and other data. Fitbit is the biggest-selling company in the young industry. Sales surged to $745 million in 2014, almost tripled its total from the year before, and its first-quarter revenue this year tripled as well. In filings with the Securities and Exchange Commission, Fitbit said it sold 10.9 million devices last year. Many analysts believe that the current market that Fitbit occupies is full of competitors, the company has been able to win a bigger share of the market because of the first mover advantage. Currently, the company faces competition from companies like Apple, Garmin, Samsung and Jawbone.
Analysts on the street are divided with regards to their opinion about the long term growth trajectory of the company. Many believe that Fitbit would have to constantly innovate in order for it to remain a main-stay in an already over-crowded market-place. While there are others who believe that the company has been able to monetize its product offerings and create a niche market for itself. Fitbit sold a total of 22.4 million shares, raising $448 million. Its stockholders sold another 14.2 million shares, worth about $284 million. The stock is trading on the New York Stock Exchange under the ticker symbol “FIT.”
