Exclusive: Why People Are Excited About Fitbit

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Paul La Monica is a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Tune in to the daily broadcast live Monday-Friday at 8 a.m. ET here.

CNNMoney Digital Correspondent Paul La Monica argued on Benzinga's #PreMarket Prep that Fitbit Inc FIT could be the next GoPro Inc GPRO. La Monica drew comparisons between Fitbit and GoPro's audiences - calling the latter a "cult stock."

Similarly, many critics believe that Fitbit is a "one-trick pony;" however, La Monica said that the fitness business is plenty robust, pointing to organic food as an example where individuals are paying more to live healthier lives. And La Monica dismissed concerns that the Apple Inc. AAPL Watch would make Fitbit's device obsolete. La Monica said there is room for devices that are "more specific" in focus.

Just three days after the stock IPO'd, La Monica even speculated that the name could be a "takeover target," with Microsoft Corporation MSFT or SAMSUNG ELECT LTD SSNLF as potential suitors.

Despite the fact that the company is growing revenue and profits "very rapidly," La Monica warned that "the valuation is insane - don't get me wrong." This could lead the name to be volatile in the near- and medium-term, La Monica suggested.

Ahead of Tuesday's open, Fitbit is indicated another 7 percent higher, after gaining more than 19 percent since its opening bid. Shares traded at $39.70, roughly double the IPO price of $20.

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Posted In: ExclusivesMoversTechBenzinga #PreMarket PrepFitbitGoProMicrosoftPaul La MonicaSamsung
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