What Happened To Fitbit Stocks?

What Happened To Fitbit Stocks

"The stock market is a device for transferring money from the impatient to the patient."

To those of you who are familiar with the varying yet valiant world of stock exchange, you'd know it is game of patience. In recent times a perception has been shaped within general populace deeming stock exchange as gateway to riches, it is incredibly rare sight to witness the said reality. According to data from J.P. Morgan Asset Management, since 1900, the stock market has experienced an average of a 20% market decline every 8.5 years.

As noted the numbers are not promising. The same way the essence of unpredictability is still found to be the market's one and true nature. Keeping in mind that no organization is safe from the timely grasp of it, it's not a wonder Fitbit suffered the one of the worst crash in recent Wall Street History.

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Fitbit Stocks soared to an all-time high when the company first went public in 2015. But it wasn't long before that one of the biggest recorded crash made sure Fitbit stocks now resides within $6-7 limit.

Fitbit Stock History!

Founded in 2007 Fitbit is an American Wearable manufacturer known for its advances in health tracking and analytics. At Chronoat we are not unfamiliar with the American brand, just a few days ago we covered its brief history, a bright history if I may add.

Just within 5 years of launch, Fitbit sales had soared to a million mark. A monumental achievement given public opinion regarding the price tag had just swayed away. By early 2015 Fitbit was in steady control of 85% marketspace for wearable technology. Not even the likes of Apple and Samsung were able to put up a challenge for the fast-growing fitness brand.

With further 3.9 million sales in the first quarter of 2015, there was much anticipation in the air when in June of the following month Fitbit was listed for the first time as a public entity.

Why Fitbit Felt The Need To Go Public

While it has never been made official why hierarchy at the Fitbit thought at the time to become a public unit. Upon seeing the past examples and pros that pops up with those examples, following cases can be made:

    • Despite $1.86 billion revenue that Fitbit had accumulated in the year of 2015 it was ambitious intention to raise further capital to fund the growth that led to Fitbit IPO.
    • To have better access to eager investors willing to take big risk. Fitbit were well aware of the upcoming effort from the Apple to gain the name in wearable market, and given Apple strong disposition it was need of time to have firm plan in place.
    • While Fitbit had the market in hold credibility and visibility was still the needed hallmark and going IPO was surefire sign to achieve it.
    • Liquidity. Given the surge in popularity Fitbit knew they would have complete control over its flow of liquidity.

    Fitbit IPO Of Year 2015

    During the sixth month of 2015, Fitbit was listed on the stock market, for what was the first time in 8 years since the company had formed back in 2007. With share priced at $20 on debut day, Fitbit stock saw incremental raise within a week time and plummeted to $51.90.

    For those of you who are not well versed with stock market, what initially happened was Fitbit estimated value kept increasing. As on the day of it public offering what was transpiring was unprecedented show of numbers. Everyone had high hopes to begin with, but no one had predicted reality at the time. Given the unpredictable nature experts were sure a drop would follow suit when by the end of second quarter Fitbit posted strong sales numbers people begin to believe otherwise.

    In retrospect it was short sighted mistake. While it was true Fitbit had a strong second half in terms of revenue. What was invisible truth at the time was Fitbit didn’t have the capacity to cater to the market. Not completely and not how it was expected from the company known for its major influence.

    November of 2015 saw huge gap in supply and demand and while experts at Fitbit began crunching numbers to make sure they find a way to find solution. What was only possibility was to announce the plans for secondary offering of 7 million shares, just a month after IPO. Unfortunately what couldn’t be seen or felt at that time later became the domino effect to one of the biggest crash in recent history.

    It shouldn’t have been the only possibility…

    Fitbit Tumbling Stock Value

    By 2017 Fitbit stocks had reduced to the meager value of below $30, a major drop from $51.90 what was just 2 years ago when company went IPO for first time. However, there were many reasons for it, and it wasn’t just Fitbit inability to mass produce for the market.

    Falling Fitbit Stocks

    Apple, Samsung, Nike, Garmin, and many others had entered the game of fitness wearables now. Fitbit wasn’t the sole player in the IoT landscape. As retaliation, Fitbit Blaze and plans for Versa and Sense series came into existence, after a tumultuous public response and lawsuit against the heart rate functionality it was becoming evident by the early 2020s Fitbit stocks would keep taking the hit.

    As it happened, by March of 2019, Fitbit stock was selling for $3. Almost 91% drop from its peak four years ago. One of the biggest recorded crash in recent history.

    Google’s Future Plan

    During August of 2019 reports from various finance newspaper began surfing of Google interest in the Fitbit brand. At the time it was hard to concede given Fitbit reduced stance and lost ground to Apple and Samsung in wearable space.

    Fitbit did see increase in it’s stock price for the first time in four years with the news of Big G thinking of potential acquisition. From $3 To $7.20 a slight jump in the valuation was posted by Nasdaq as Facebook joined the battle to take over tumbling Fitness empire.

    Of course, Google won the fight and Alphabet Inc (Google Parent Organization) in bid to diversify its revenue streams and challenge Apple made their intention public by November of 2019 of possible merger. There was still many issues to address before a joint venture could be formed. Given Google monopoly in Search Engine space there was a major dilemma of data privacy on hand. Many feared with Fitbit data collection Google could integrate it with Google Ads platform. A problem that could give birth labyrinth of privacy breaches and legal loopholes.

    Data Privacy Issue

    U.S, Europe, and Australia set up commissions to look into the deal. While Google braced for heated affirmations required by the legal guardians to allow for possible merger. During all of it Fitbit remained quiet and continued on what it had planned without the Google’s aid. Although, it was becoming evident sooner or later Google would be cleared to complete the deal, sudden arrival of COVID-19 pandemic put the halt to progress.

    On the grand scale just for time being…

    Fitbit and Google Merger

    With the start of 2021 Alphabet Inc was finally given the green light to complete the $2.1 billion acquisition. With last recorded Fitbit (FIT) stocks sitting at $6.98, those who had it were given two choices, either they could cash it out or use the monetary value of their stocks to have fractional stocks in Alphabet Inc.

    Aftermath & Current Stock Exchange Rate Of Fitbit

    Fitbit Current Stocks

    As of 1st September 2023 Alphabet Inc current stock price is $2082.76, a high end value for organization hell bent to dominate in more than one space.

    It is still unknown what exactly constitutes of Alphabet Inc strategy to integrate Fitbit within Google utopia considering Fitbit smartwatches are still not akin to Wear OS system. Although there is bleak possibility that Fitbit Versa 5 and Fitbit Sense 3 might be treated with like Pixel Watches.

    Whatever that has been planned we could assume Fitbit would play a major part within it. After all it is not a hidden secret Google has always dreamt of expanding its line of revenues with more proliferation within the ranks.

    Ezhan Javed

    CMO At Chronoat

    “What am I if not the words I write?” is something I’ve asked myself quite often. So, I feel it is my duty being CMO at Chronoat to not only write to inform but inspire.

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