Back in July 2018, Fitbit Inc. (NYSE:FIT) revealed that it would launch the charge family of products in India come October. Notably, the firm delayed due to some difficulties launching its payment platform in the country. Finally, the launch date arrived as January will see enthusiasts get their hands on the favorite fitness devices.
A new generation of wearables
The Fitbit Charge 3 Special and Charge 3 are the crown jewel of the new family. According to James Park, co-founder, and CEO of Fitbit, the Charge family is the company’s most popular fitness devices. The new fitness bands come with advanced features that promise much more comfort compared to Alta, Ionic or Versa families. Notably, the bands boast record water resistant capabilities of up to 50 meters.
Further, Fitbit decided to put in more work when it comes to the display. Specifically, the display sports Gorilla Glass 3 for protection and is also larger and brighter. Besides the upgraded screen, the device comes with a new generation fitness tracker which incorporates a SpO2 sensor. Although some of these exciting features are present in the Ionic and Versa families, Charge 3 looks sexier and more sophisticated.
According to Park, there is an excellent customer reception for the devices in India. Further, the firm is dealing with record pre-orders as more customers line up to get a feel of the fitness device. Interestingly, the new enthusiasm for the Charge 3 devices is having the desired effect on the firm’s stock.
Performance of the share price
In the months leading up to November 2018, the stock nosedived due to various challenges, litigation among them. In particular, Rosen Law Firm filed a lawsuit to claim damages for Fitbit investors who suffered losses. According to the details of the lawsuit, Fitbit omitted information of material significance which led to the losses.
A recent news release indicates that the lawsuit is still on. Notably, the statement reminds investors who might have suffered losses to join the litigation. The report is not having a substantial effect on the stock. For much of the last four trading days, the stock gained for half of the time.
Further, the RSI reading for the stock’s price indicates some positive energy in the share price. Notably, the stock broke 50-day moving average resistance in the last 24-hour trading period. The strong customer reception of the Charge 3 fitness bands in India is one source of the positive energy.
Interestingly, the last closing price stands at $5.37. Given that the 200-day moving average establishes resistance at $5.59, it is possible for the stock to breach resistance soon.
Source: STOCKCHARTS.COM
Future performance
The chances of the stock climbing past $5.59 are very high. Alongside the new generation of fitness devices launched in India, Fitbit said it would launch the Fitbit Labs Sleep Score. According to Fitbit’s CEO, the new devices incorporate a SpO2 Sensor.
Besides the sensor, the firm will use the Fitbit Labs Sleep Score data center to help users keep track of their sleep habits. Notably, Fitbit is only waiting for FDA approval for the beta version of the data center to go live. This is one reason investors should hold tight onto their stake in the company. The company’s stock is very likely to gain past the current 200-day MA resistance sooner than expected.
Further, while commenting on the Q3 2018 results, Park noted that the firm is back to profitability. Also, the Fitbit re-affirmed their full-year guidance. This is to say that the firm is in good shape and could see further growth in the coming quarters.
Another reason of optimism in the firm’s future performance lies in the CEO’s words, “We are now the number two player in the smartwatch space in the U.S. – a category we just entered with zero share only fourteen months ago.”