Fitbit Breaks Out on Google Deal, but Rally Fizzles

Fitbit, Inc. shares broke out from trendline resistance on Monday after the company announced a collaboration with Alphabet Inc.  on consumer and enterprise digital health solutions. Under the terms of the agreement, Fitbit will use Google’s Cloud Healthcare API to connect user data from wearables with electronic medical records while also leveraging its recently acquired Twine Health coaching platform for diabetes and hypertension management.

On Tuesday, Fitbit stock moved nearly 3% lower by mid-day as traders took profits off of the table. The sentiment on the stock has been very mixed over the past quarter, with analysts disagreeing on its future potential. Morgan Stanley cut Fitbit stock to underweight with a $4.00 per share price target in early April, shortly after Craig-Hallum analysts had initiated coverage on the stock with a Buy rating and a $10.00 per share price target in March. (For more, check out: ‘Hard to See a Floor’ on Fitbit: Morgan Stanley.)

Fitbit shares moved sharply higher on Monday following a Google collaboration, but the stock gave up its gains by mid-day on Tuesday. …read more

Read more here: Fitbit Breaks Out on Google Deal, but Rally Fizzles

Category: FIT, GOOG

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