Fitbit Inc (NYSE:FIT) had a relatively strong day in the market on Thursday. However, I’m expecting that the stock will likely spike again relatively soon. Below, we’ll talk about what we’re seeing, why I’m expecting another spike, and what we’ll be watching with regard to FIT stock ahead.
What We’re Seeing From FIT
As mentioned above, Fitbit Inc (NYSE:FIT) had an incredibly strong day in the market. After starting the day well in the green, the stock maintained a strong pace of growth. FIT finished the day trading at $8.86 per share after a gain of $0.32 per share or 3.75%.
Why I’m Expecting A Spike
Around the time of the spike, we started to see quite a bit of chatter on social media surrounding the stock. The chatter suggests that an acquisition is coming, and we know how exciting acquisitions can be. According to the rumors, FIT received a buyout offer at a price of $12.50 per share. If this rumor is true, the buyout would represent an incredibly strong premium and would be very hard to turn away from.
What We’ll Be Watching Ahead
Moving forward, we’re going to be keeping a close eye on this acquisition news. Any news of a possible buyout will generally lead to big gains, and in the case of Fitbit Inc (NYSE:FIT), the news is somewhat realistic as this would be the perfect offer at a perfect time. Nonetheless, regardless of what happens here, there’s likely to be big opportunities surrounding FIT stock relatively soon!
Update (11:09) – The spike has started. FIT stock is currently trading at $9.07 per share after a gain of $0.52 per share or 6.08%.
Update (11:16) – Buyer is said to be ABM Capital.
Update (12:39) – Fitbit said it is looking into the legitimacy of the offer.
Update (12:48) – Several flaws found in offer… Address does not match business name, CEO of the company is Kevin Mead who had no idea the filing was made, looks like the filing is a farce and the FIT acquisition is not going to happen.
Despite Fitbit not receiving any takeover offer, the stock nonetheless had a strong day. We’ll wait to see where the story goes from here.
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Note: This article was written by Joshua Rodriguez, owner and founder of CNA Finance. If you would like to connect with Joshua, you can do so by emailing him at CNAFinanceHelp@gmail.com!