Fitbit is set to open in the New York Stock Exchange this week and we're wondering: is it worth the investment? Even with the allure of the Apple Watch, Jack Mohr, stock expert and Research Director for Action Alerts PLUS at TheStreet.com, believes the answer is yes.
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As of now, Fitbit is dominating the “global wearables” field. Forbes recently reported that Fitbit holds a 34% stake in this market. Meanwhile, Jawbone owns only 4.4% (Chinese products that aren’t as popular in the United States, such as Xiaomi, also hold large stakes in the market.) And it's likely the Apple Watch won't detract too much from that.
“I think fears over the Apple Watch are overstated,” Mohr told us. “Although [the Apple Watch], will have several features to track fitness performance and health data, I believe dedicated, single-purpose devices such as Fitbit hold a meaningful advantage over multi-purpose devices such as the Apple Watch, which are primarily smartphone extensions.”
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Apple Watch or not, Fitbit is probably a smart investment: “All in, I think Fitbit is a solid IPO investment…. Early valuation indicators suggest the stock is very conservatively valued. I think there is a sustainable path to continued outsized growth ahead for this company.”
With the additional revenue Fitbit will take in from the IPO, we can only wonder what revolutionary idea the brand will debut next...