Fitbit stock rose 17.4% in September
The stock of consumer technology (QQQ) company Fitbit (FIT) rose ~17.0% in September 2017 to close the month at $6.96. It’s trading 42.0% above its 52-week low of $4.90 and 54.0% below its 52-week high of $15.19.
Last month, Fitbit launched Ionic, a smartwatch that includes heart rate monitoring, personal coaching, and GPS (Global Positioning System). Similar to the Apple Watch Series 3 (AAPL), Fitbit’s Ionic is water resistant up to a depth of 50 meters. Ionic is priced at $300 and will be available for purchase later this month.
Could Ionic help Fitbit gain market share in the wearables market?
The above table shows how Fitbit has performed in the wearables market at the end of 2Q17. Last year, Fitbit led the global wearables market with a 24.0% share. Its shipments in 2Q17 fell almost 41.0% YoY (year-over-year) to 3.4 million devices. The company is now in third place behind China’s (FXI) Xiaomi and Apple. Garmin (GRMN) and Fossil are the other major players in the wearables market.
Fitbit is banking on Ionic to drive sales in the 2017 holiday season, which could help the company gain more share in the wearables market. However, some analysts believe Fitbit is a late entrant in the smartwatch space, which could indicate less-than-expected sales for Ionic.