Fitbit Inc (NYSE: FIT) is having an incredibly strong start to the trading session this morning, and for good reason. Takeover chatter seems to be hitting the wire, causing excitement among investors and sending the stock rocketing toward the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:45), FIT is trading at $5.27 per share after a gain of $0.21 per share (4.15%) thus far today.
FIT Gains On Takeover Chatter
As mentioned above, Fitbit is having an incredibly strong start to the trading session this morning as takeover chatter starts to surface surrounding the company. While we were able to find various posts on social media suggesting that the company may soon be taken over, the rumor is overwhelmingly vague. It does not suggest who may be interested in taking the company over, nor at what price that interest lies. Nonetheless, the rumor is indeed causing excitement and pushing the stock toward the top.
With all of that said, there’s something that we feel is important to remember here. The truth of the matter is that takeover chatter is nothing new in the market. In fact, it happens quite often. However, like most other forms of rumors, takeover rumors in the stock market tend to be vague and lacking of truth. Considering the story surrounding the FIT chatter that we’re seeing today, we don’t believe that the rumor is a sign of a legitimate takeover in the works.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on FIT. In particular, we’re interested in learning if there is any validity to the takeover rumors. While we don’t believe it will happen, the truth is that anything can happen in the market. Nonetheless, we’ll continue to follow the story closely bring the news to you as it breaks!
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