Last week, Cramer dropped a subtle meme that his "channel checks" indicated Fitbits were not selling well. It went to $14.50. I should have known. You could have bought this weeks $15 calls that day for .05/.10... $0.55 as I type.
A lot of shorts in $FIT Any break above the 16 level could trigger a short-covering rally taking the stock higher towards $18.2/60 area
Fitbit Shares Gain On Positive Analyst Note (FIT) Shares of Fitbit Inc. (FIT), the maker of wearable fitness devices, climbed in trading Thursday on the back of a positive analyst report and as its latest device began selling on Amazon.com earlier this week. It doesn’t hurt that the new Fitbit Charge 2 and Flex 2 are also getting good reviews. Fitbit was up more than 6% to $15.67 on light volume of 5.1 million shares. Average daily volume is 8.7 million shares. The stock is far from its 52-week high of $42.04, but it has been gaining over the last few days. Market Dominance Betty Chen, an analyst at Mizuho Securities, reiterated her buy rating on the stock Thursday saying that after hosting two days of investor meetings with Fitbit Chief Financial Officer William Zerella, she is more confident in the company's long-term prospects. She said she is confident Fitbit can maintain its dominant market share and also pursue new opportunities in the healthcare market. “With early favorable reviews and [products] attractively priced relative to the marketplace, the Charge 2 and Flex 2 allow FIT to compete effectively in the smartwatch and wearables space," the analyst said. "Combined with the Alta and Blaze, FIT has launched 4 new devices in FY16, outpacing the rate over the last two years. In addition, Fitbit’s cross-platform compatibility with both Android and iOS expands the addressable market size.” (See also: Fitbit, Apple Collide in Wearables Market.) Expanding Into Digital Health According to the analyst, Fitbit’s move to hire Adam Pellegrini as the new vice president of digital health showcases the company’s commitment to expanding into the corporate and digital health markets. While corporate wellness represents less than 10% of Fitbit sales, the company believes the data it has on its millions of active users can help companies and insurers with gauging health indicators and realizing cost savings. Chen said Fitbit will likely make more investments in the digital health segment and could include mergers and acquisitions.