The long awaited Fitbit IPO hit this week and exceeded expectations. The company has performed very well over the years in terms of both units sold and market share.
While its strong growth has contributed to the landmark fit-tech IPO, it has seen some hurdles in this IPO run-up, with major competitor Jawbone filing suit a few weeks ago.
While we’re not investors in this stock, we’d expect the current momentum to continue, especially as the overall wearable market expands. Of course, the longer term is less clear because future iterations of the Apple Watch as well as fierce competition in the space could chip away at Fitbit’s position.
The fitness tracking device maker priced its shares higher than expected, reflecting a big demand by investors.
Apparently, investors think, Fitbit, the maker of fitness-tracking bracelets, is in pretty good shape.
Shares of the company jumped as much as 60% in their debut Thursday, valuing the company at $6.5 billion.
The stock opened up 52%, putting it among the 10 biggest opening pops for an IPO so far this year, according to data from Dealogic (see the chart below for the rest). U.S. burger chain Shake Shack SHAK -4.43% , which went public in January, saw the biggest pop with a 124% gain.
Full Story: Fitbit’s IPO makes investors’ hearts flutter
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