Fitbit at this time got here out with some further information which may give Wall Street some indicators of life because it seems to compete with an more and more sophisticated health monitoring atmosphere — and the inventory is surging this afternoon in consequence.
Fitbit’s shares are up greater than 11 p.c after it introduced a partnership with Dexcom, which might introduce glucose monitoring on the Ionic Smartwatch. This considerably nudges Fitbit past simply health monitoring into one thing that’s extra within the vein of well being monitoring typically. Starting in 2018, the Fitbit Ionic will present customers information from a Dexcom G5 cellular sensor. It’s a collaboration that’s aimed toward creating and advertising merchandise to higher handle diabetes.
Fitbit is well-known for its health trackers, however more and more there’s been a proliferation of trackers that concentrate on all areas of well being. The Apple Watch is attempting to maneuver additional into one thing that’s broader than merely health, and there are startups like Proof seeking to decide away little niches like monitoring blood alcohol content material. The sum of all these little niches might find yourself as a complete well being monitoring system, although cramming all of them into one piece of might show more difficult than initially anticipated.
It’s a pleasant bounce and a reprieve from a reasonably ho-hum month for Fitbit, which has seen a slight bump in its efficiency.
Still, any signal of life that alters the calculus of the type of enterprise Fitbit can construct means there’s probably going to be an enormous inventory value swing like we’re seeing at this time. Fitbit has barely sustained “unicorn” standing, however it’s nowhere close to the place it was when it went public, and has needed to combat to persuade Wall Street that it’s an actual, wholesome firm.
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