Fitbit (FIT) wowed Wall Street this summer, with FIT stock offering at $20 a share in June but opening at about $30 or so for an immediate 50% pop. Meanwhile, shares have climbed to roughly $45 — double the IPO price and worth another 50% in gains for any traders who got into Fitbit stock on day one.
One such savvy trader is InvestorPlace.com’s own John Divine, who has written up his bullish take on Fitbit and has put his own money behind the fitness wearables company.
The argument for FIT stock is pretty simple: This is a fast-growing company in a fast-growing part of the consumer tech market. And unlike other startups that go public with only hopes and dreams, Fitbit stock is soundly profitable right now and actually seeing earnings per share accelerate faster than revenues, based on Q1 numbers.
Specifically, the Fitbit S-1 filing reveals revenue growth that’s roughly three-fold year-over-year in Q1 2015, from $109 million to $337 million … while EPS soared almost 6x, from 6 cents to 33 cents.
I spoke with John Divine today about why he got into Fitbit stock, what he expects going forward as the company approaches its first earnings report as a publicly traded company, and how optimistic he is about the future as a big competitor — the Apple (AAPL) smartwatch — has started to lose some serious momentum lately.
Take a look and a listen in the associated video below.
Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not hold a position in any of the aforementioned securities.
