Fitbit Inc (NYSE: FIT)
Fitbit has had a relatively strong day in the market, and I’m expecting that the stock will likely spike again relatively soon. Below, we’ll talk about what we’re seeing, why I’m expecting another spike, and what we’ll be watching with regard to FIT stock ahead.
What We’re Seeing From FIT
As mentioned above, Fitbit is having an incredibly strong day in the market. After starting the day well in the green, the stock has maintained a strong pace of growth. Currently (11:02), FIT is trading at $8.96 per share after a gain of $0.41 per share (4.80%) thus far today.
Why I’m Expecting A Spike
Just moments ago, we started to see quite a bit of chatter on social media surrounding the stock. The chatter suggests that an acquisition is coming, and we know how exciting acquisitions can be. According to the social rumors, FIT has received a buyout offer at a price of $12.50 per share. If this rumor is true, the buyout would represent an incredibly strong premium and would be very hard to turn away from.
What We’ll Be Watching Ahead
Moving forward, we’re going to be keeping a close eye on this acquisition news. Any news of a possible buyout will generally lead to big gains, and, in the case of Fitbit, the news is somewhat realistic, as this would be the perfect offer at the perfect time. Nonetheless, regardless of what happens here, there’s likely to be big opportunities surrounding FIT stock relatively soon!
Update (11:09) – The spike has started. FIT stock is currently trading at $9.07 per share after a gain of $0.52 per share, or 6.08%.
Update (11:16) – Buyer is said to be ABM Capital.
Update (12:39) – Fitbit said it is looking into the legitimacy of the offer.
Update (12:48) – Several flaws have been found in the offer – the address does not match business name and CEO Kevin Mead had no idea the filing was made. It looks like the filing is a farce and the FIT acquisition is not going to happen.
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[Image Courtesy of Wikimedia]