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Why People Are Excited About Fitbit

Why People Are Excited About Fitbit

Paul La Monica is a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

CNNMoney Digital Correspondent Paul La Monica argued on Benzinga's #PreMarket Prep that Fitbit Inc (NYSE: FIT) could be the next GoPro Inc (NASDAQ: 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. La Monica dismissed concerns that the Apple Inc. (NASDAQ: AAPL) Watch would make Fitbit's device obsolete. La Monica said there is room for devices that are "more specific" in focus.

Related Link: People Trading Out Of GoPro And Ambarella Into FitBit? This Analyst Thinks 'It's Very Possible'

Just three days after the stock IPO'd, La Monica even speculated that the name could be a "takeover target," with Microsoft Corporation (NASDAQ: MSFT) or SAMSUNG ELECT LTD (OTC: 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.

Fitbit was up 2.5 percent at $38.05 in Tuesday's session.


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