Fitbit, the popular wearable technology firm, has more than doubled its value since going public two months ago and analysts are suggesting the company has long-term potential linked to the smartphone market.
Although one bad day last week saw the company's stock price tumble 13 percent from a high of $51 per share, Wall Street watchers say the company is looking ahead to good times.
The company, which is best known for fitness trackers and other wellness-oriented wearables, is aiming to get 20 to 30 percent of smartphone users onto its product, according to Investors Business Daily. Company leaders pin their hopes on the fact that some consumers buy more one wearable health tracker.
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An additionally profitable development for companies such as FitBit are wellness programs increasingly being promoted by employers seeking to drive down employee health care costs. Employers and insurers who are incentivizing workers to join gyms may soon begin reimbursing employees for the cost of wearable health devices.
Indeed, as part of its promotion efforts, Fitbit is selling the benefits of wellness to businesses.
"Fitbit is working to empirically show the correlation between wellness programs and lower health care costs for employers," Katy Huberty, an analyst for Morgan Stanley, told Investors Business Daily.
One development in the smartphone market that FitBit can't be happy about: Apple will soon become the exclusive retailer of Speedo Shrine, a wearable device that tracks swim strokes along with other vital data, such as steps and sleep patterns. FitBit does not currently offer such amphibious options.
Indeed, a report last year suggested that FitBit's decision not to integrate with Apple Health may hold back the company's market share, at least in the short-term.
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