FIT - The Rally In Fitbit Stock Makes Sense
Shares of wearable device maker Fitbit (FIT) soared after the company reported third quarter earnings which beat top and bottom line expectations, and included a surprise adjusted profit and an above-consensus fourth quarter guide. FIT stock rose nearly 30% in response.
We feel this rally in FIT stock, while driven partly by short covering, is warranted, and that FIT stock actually has room to the upside into the end of the year. We are impressed by the company's smartwatch growth trajectory, and feel that revenues and margins have bottomed. We expect steady revenue