The stock price of Fitbit Inc (NYSE:FIT) climbed nearly 50% during its first day of trading on Thursday, June 18.
The maker of wearable fitness-tacking devices priced its initial public offering (IPO) at $20 per share, higher than its already increased price range of $17 to $19 per share.
Fitbit traded more than 50 million shares and its stock price increase as much as $31.90 per share today. The stock closed $29.68 per share, up by 48.40%. The stock gained additional 0.51% to $29.83 per share during the extended trading hours.
One of the hottest IPOs this year
Wall Street analysts valued Fitbit at $4.1 billion, which makes its IPO as one of the hottest this year. The company attracted many investors because of its leading position in the connected activity tracker market.
In addition, the company achieved significant revenue growth since its establishment. The company’s revenue increased from $14.4 million in 2011 to $745.4 million last year.
As of March 31, 2015, Fitbit has 9.5 million active users. It is used by many celebrities including Britney Spears and Ryan Reynolds. President Barack Obama likes the Fitbit Surge, which was the highest selling GPS fitness watch in the United States with 61% market share in the first quarter.
Fitbit could remain competitive with other players
In an interview with CNBC’s “Squawk on the Street,” Fitbit co-founder and CEO James Park expressed his confidence that his company could remain competitive even against other tech giants such as Apple Inc (NASDAQ:AAPL).
“There’s over $200 billion of consumer spending on health and fitness. This is a massive market. There’s room for more than one dominant player. The brand Fitbit is really synonymous with health and fitness tracking, so we feel that we have really significant competitive differentiators in the market,” said Park.
JMP Securities analyst Alex Gauna commented that investors should not be too much concern whether Fitbit will remain competitive amid the increasing number of players in the wearable fitness-tracking market.
He pointed out that Apple is not in the fitness tracking marking in terms of comparable performance, price point, integrated GPS, or battery life.
He said Fitbit has a lot to maneuver within the next couple of years.
Gauna also noted that Fitbit is well positioned because its platform is integrated with Apple’s iOS and Google’s Android operating system.
Jonathan Roosevelt, chairman of Roosevelt Capital, commented that Fitbit recognizes that it needs to continue to establish its brand leadership, and perceives marketing as an opportunity to stay ahead.
Fitbit has 85% share in the wearable fitness tracking market.
 climbed nearly 50% during its first day of trading on Thursday, June 18. Fitbit traded more than 50 million shares){kind=link}