The rumor had already circulated at the end of September and now returns: Google wants to buy Fitbit to enter the wearable market directly and compete with Apple Watch, a device that dominates the sector. Even if the last quarterly results of Google and Fitbit do not shine, the prices of the two stocks on the stock exchange are on the rise, driven by rumors on the ongoing secret negotiations.
Although Alphabet's turnover increased by 20% slows down the operating profit which from 26% in the same period last year now marks 23%: analysts forecast a profit per share of $ 12.42 per share, compared to $ 10.12 actually registered. This is despite the listing of the Alphabet share on the stock market increased by almost 2%.The news that Google wants to buy Fitbit has triggered an impressive rise in the stock market for the smartwatch manufacturer's actions. Although in July the company revised its forecasts for the current year downwards, due to lower sales than expected, rumors circulating caused a leap in the market of over 18%.
The listing of the Fitbit share was suspended due to an excess increase during the day yesterday: when at the end of the day trade was resumed, the increase was 30.5%. The increase in the value of the company on the stock exchange was over 330 million dollars, bringing capitalization to almost 1.5 billion dollars.
Google provides Wear OS operating system for wearables to smartwatch manufacturers like Fossil and others, but not directly present in this market with its devices. The acquisition of Fitbit would allow Alphabet to enter the market faster and compete with Apple Watch. The ongoing negotiations are also confirmed by CNBC but at the time of writing we have not yet leaked the amount of the purchase offer and above all it is not yet clear if the transaction will be completed.
Fitbit wearables focus on the functions dedicated to the health and well-being of the user, in addition to those for sports: in addition to steps and calories burned, they measure the distance traveled, stairs and floors, heart rate and monitoring of sleep quality. Based on all the data collected, the Fitbit devices offer advice, daily routines and suggestions to improve well-being, rest: in the US and in the future also arriving in other countries, Fitbit Premium subscription offers a real personal trainer which follows the user in every aspect related to health, sport, diet and sleep with targeted advice and guided programs.
In this page the review of Fitbit Versa 2. Instead to know everything about Apple Watch we refer to this in-depth analysis on the latest Apple Watch Series 5 model.