Fitbit stocks continue to gain following Alphabet bid surge
Google and Apple compete for healthtech dominance
Google’s parent company Alphabet has offered to acquire Fitbit, the wearable fitness technology company.
Fitbit’s stock surged by 30.5 per cent on Monday October 29. It added over $330 million to its market cap bringing it to $1.5bn (£1.16bn, €1.35bn). The rise has continued with Fitbit stock standing at $5.66 in mid-morning US trading.
Google’s interest has saved the company’s stock price from a mediocre 2019. It is up 12 per cent on the year to date.
Fitbit has struggled to compete with Apple in the wearable fitness tracking market. In 2018 Apple Watches accounted for over half the global smartwatch market in terms of units shipped.
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Competitors to the Apple Watch such as Fossil currently use Google’s licensed Wear operating system. Alphabet’s potential acquisition of Fitbit underlines Google’s determination to strengthen its healthcare strategy and compete with Apple.
Both companies declined to comment on the potential deal.