Market Overview

Here's How Much Investing $1,000 In The 2015 Fitbit IPO Would Be Worth Today

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Here's How Much Investing $1,000 In The 2015 Fitbit IPO Would Be Worth Today

Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.

Fitbit’s Difficult Decade

One market laggard of the last decade was Fitbit Inc (NYSE: FIT).

Fitbit was founded in 2007 and made the move to go public in June 2015. Fitbit was one of the highest-profile IPOs of the 2010s, launching with a $4.1 billion market valuation.

Unfortunately, investors expecting Fitbit to burst out of the gates as the next red-hot tech stock were sorely disappointed. Shares plummeted on concerns about rising competition from deep-pocketed Apple Inc. (NASDAQ: AAPL) and other fitness tracker leaders. That same Fitbit committed to transitioning its business model from a consumer electronics company to a digital health care company.

After selling IPO shares at $20, Fitbit shares hit their all-time high within weeks of hitting the market, soaring up to $51.90 during the frenzy surrounding its IPO. By early 2016, Fitbit shares were back below their $20 IPO price and they have never traded that high since.

Fitbit shares finished 2016 down a whopping 75% after heavy investments and a new series of products failed to drive growth for the company. Fitbit stock dropped below $10 by the end of 2016.

See Also: Here's How Much Investing $1,000 In Amazon's IPO Would Be Worth Today

2020 And Beyond

Fitbit hit its all-time low of $2.81 in 2019 before news of a buyout by Alphabet, Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL) sent the stock back up near its proposed $7.35 buyout price.

Unfortunately, the stock has since slumped back to around $6.50 on concerns Alphabet could terminate the deal due to the economic shutdown.

So today, $1,000 worth of Fitbit IPO stock in 2015 would only be worth about $323.

If the Alphabet buyout closes, the $7.35 buyout price suggests about 13.7% upside from current levels. If not, history suggests the stock could be headed significantly lower.

 

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