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Fitbit stock soars after announcement of collaboration with Google

Fitbit stock soared to near 10 percent on Monday after the company announced a health-care collaboration with Alphabet‘s Google.

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The new focus on health may make Fitbit a stronger competitor in the wearables market. The new health venture comes after competitor Apple announced a tighter focus on health with its smartwatch. The Apple Watch’s sales have steadily grown the past four quarters, and it just had its best quarter ever.

Fitbit has not had a successful year. The company’s earnings release in February revealed that it is losing money and expects revenue to decline further in the upcoming year. It expects that “consumer demand shifting towards smartwatches” (like the Apple Watch) will hurt sales even further.

The stock is down around 3 percent this year.


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Fitbit CEO on new wearables



Fitbit CEO on new wearables