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Assignment from nickkynickky. 

Based on the attached article, your own personal research about the FitBit company and its stock performance (NYSE: FIT), please discuss your opinion on whether an investment and/or a trade would be justified. Please explain why or why not.

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Individual Assignment Could Fitbit Follow In Apple's Footsteps? By “Bull & Bear Trading” Summary Innovation increased the functionality of the early personal computer. Innovation is rapidly improving today's wearables devices also. Fitbit is a leading pioneer of the wearables computing ecosystem. Global adoption of wearable personal fitness devices is now rapidly occurring to assist in the implementation of preventive healthcare. This macro-trend will continue for the long term. Rapidly rising sick-care costs worldwide are unsustainable. Sick-care costs may contribute to an increase of financial insolvencies for governments unless solutions are implemented now. Preventive healthcare is a partial solution. Corporations-governments are learning that the Fitbit ecosystem decreases healthcare expenses and insurance premiums, while increasing employee productivity for higher profits. Fitbit is pioneering this rapidly growing corporate-government wellness market. Fitbit's international expansion is now ramping up and promises to be strong. This is not factored into the price of Fitbit stock with a forward PE of only 11. The goal of this article is not to draw a straight-line comparison between Apple (NASDAQ: AAPL) and Fitbit (NYSE: FIT), but to suggest a vision of the future in which new technologies will evolve and then be successfully brought to consumers worldwide by new category leaders, in this case Fitbit. Sometimes we get so focused on the present that we forget the past and lose our imagination for the possibilities of the future. The future is upon us in the rapidly evolving wearables industry and Fitbit is one of the category's leading pioneers with first-mover advantages worldwide. Finding the "next Apple" is one of the holy grails sought by investors and a goal worth pursuing. So with the possibility that Fitbit may follow in the innovative, high-growth footsteps of Apple for investors, let's explore this idea further. Perhaps it is ironic that the vintage Apple logo with the message "Think Different" is disregarded by some of today's Apple fans when invited to think differently about the future of another rising technology company, Fitbit. Wouldn't the early Apple culture encourage you to at least consider the possibilities for Fitbit's future just long enough to envision that this young company, Fitbit, could indeed become hugely successful one day in the future? Would Steve and Woz consider the possibility that other companies, such as Fitbit, could also one day achieve the kind of success that Apple has achieved over the years? Hmmm. Steve would probably say, "At least hear the man out with an open mind." Thanks Steve. Woz, you get back to soldering those circuits onto that motherboard, and is this garage going to be big enough for you guys? Okay, here we go... Out of each new technology revolution arises a number of highly successful companies who go on to grow, deliver a range of diversified products, and become household names. Apple and Microsoft (NASDAQ: MSFT) easily come to mind as just two winners from the computer revolution of the 1980s. Google (NASDAQ: GOOG) (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN) are two more winners from the Internet revolution of the 1990s. Now we are in the early days of the newest wave of innovative technology, the wearables revolution. Who will be the long-term winning wearables companies that deliver great wealth creation for shareholders as these companies become cornerstones of the new technology landscape? If history is any guide, and it often is, then companies with first-mover advantages in a new category often have the ability to take some of that early cash flow and re-invest into their research and development efforts to develop a series of successful products. The company that has clearly established first-mover advantages in wrist wearables, leads the wearables category, and is an early mHealth pioneer today is Fitbit. Fitbit has been building a small army of engineers, designers, and developers with about two-thirds of the company, or 755 employees, now involved in the R&D effort at the end of Q116. There were 140 patents issued to Fitbit's portfolio, with 156 patent applications pending. Fitbit is likely to achieve significant ROI on this R&D spend that is outstripping the competition. CEO James Park and company are definitely looking to the future and so should shareholders. Fitbit has received strong consumer acceptance of its products in the U.S. and globally as it has been entering the new markets of EMEA and APAC. Fitbit is somewhat reminiscent of another company during an earlier time when Apple Computer was public for just eighteen months after its IPO of 4.6 million shares at $22 on December 12, 1980. Keep in mind that today's mighty Apple did not exist at that time, in fact Apple was not even a hit with investors after the IPO hit the street. Please review the split-adjusted closing price of .51 cents for Apple Computer on its IPO day at the bottom of this Historical Price Report. Then track the price of Apple stock out about eighteen months later where it closed at .24 cents in June of 1982. Split-adjusted this translates into a $22 IPO for Apple Computer in December of 1980, that was worth only about $10.50 per share in June of 1982. Apple Computer was a busted IPO and investors were down over 50% during this 18 month time frame. Right out of the IPO gate, Apple Computer was hardly the Cinderella story for investors that current day mythology promotes. Let's be candid, Apple Computer was a dog of a stock after its IPO. With the myth that Apple was always a superstar company with a corresponding stellar stock price performance dispelled, let's now take a look at a few similarities between the Apple Computer of yester-year and today's Fitbit. At this point it would be helpful to have a time machine enabling us to look back at where Apple has been on its corporate journey, while envisioning the possibilities for Fitbit's evolution in the fast-approaching future. Back To The Future For you to consider that Fitbit could follow in Apple's footsteps we must first travel back to the future. This requires that you adjust your perspective from the single-minded view that we all have of Apple as the dominant player that it has become today. We must travel back to a day when Apple was also a fairly recent IPO and was facing many challenges. So jam a load of compost into your flux capacitor, climb into your DeLorean, and mash down the pedal to the metal! Please note in this Macworld timeline that in 1996 Apple posted, "a $740 million quarterly loss, Apple has only 5 week's cash on hand" as this company was on the brink of failure. Pictured above: Very early adopters of the Fitbit ecosystem counting steps. McFly with the Surge! Doc with the Blaze! Astute investors recognize that history can and does repeat itself in the stock market. These early days of the wearables computer industry bear more than a few similarities to the early days of the personal computer industry in the 1980s. The personal computer revolution was an important part of a confluence of events that launched a great bull market in the 1980s. Today, the wearables revolution is a key part of the beginnings of what may become another epic bull market for stocks. Apple Computer, as it was known at the time, was among the key companies at the center of the computer technology revolution. Today, Fitbit is one of the key companies and industry leaders at the center of the wearables technology revolution. In 1984 our family became an early adopter of the Apple Macintosh personal computer. Maybe it was because we were watching the Super Bowl and Apple's legendary commercial, "1984", by Ridley Scott was aired. Or maybe the electrical engineer in my dad recognized the superior design elements of the first Mac. Being an early adopter was cool. I was still in college in those days and remember spending time on that classic Macintosh learning to use the GUI with Draw and Paint features and playing a few early games. Millionaire Maker was a stock market game that issued news developments that would move the prices of your stock portfolio. Is it any coincidence that I became a stockbroker a few years later in 1986 and later went on to open a small hedge fund? Did gamification have a profound influence on my future career path? And can I thank Jobs and Wozniak for their amazing contribution to the tech-world that lead to the Apple Macintosh, for corrupting my mind with a fairly addictive stock market game early on? Hard to say. And here I am many years later still in the stock market seeing familiar patterns repeating for a new company, Fitbit, in a new category, called wearables. I remember these patterns from back in the day when a new company called Apple Computer was helping to pioneer a new industry called personal computers. It is now early days for the wearables industry just as the personal computer industry experienced their own nascent phase of evolution in the 1980s. Is this pattern of early days industry leader (Apple / Fitbit) in an industry (computers / wearables) that is becoming a necessity in our lives starting to sound somewhat similar? For those of us who witnessed the developments that were key to the advent of the multi-year bull market driven by the rise of the computer revolution, the current drumbeats of the wearables revolution sound familiar and similar. Innovative new products are coming to market; the global consumer embraces these products; financial and productivity gains are made by corporations and individuals that justify the expenditure for the product's purchase; new companies are being formed in wearables; and established companies are entering and/or acquiring their way into the high growth wearables category. We have seen these patterns of a technology revolution before and we know how impactful all of this can be upon boosting our economy and stock market. Like many revolutions, early victories are small and go largely unnoticed: • Take the consumer's overwhelming choice of Fitbit products as the undisputed world leader in activity trackers. At the time of this writing, Fitbit products occupied 14 of the top 15 best selling trackers on Amazon with one Garmin (NASDAQ: GRMN) product in the top 15. The consumer has also voted Fitbit's Blaze as the world's number one selling smartwatch with 5 of the best-selling smartwatches on Amazon being the Fitbit Blaze. • Consider that over 70 of the Fortune 500 companies are subscribers to the Fitbit ecosystem and that Fitbit is extending its dominance in the corporate wellness market that it has pioneered for wrist wearables. • Notice that early reviews being logged by Chinese consumers on Ali Baba's for Fitbit products are very positive. Please scroll down more than 3/4 of this page to view this 4.8 star out of 5 possible stars review by Chinese consumers on Fitbit products. These reviews are even higher than the 4 out of 5 stars that Fitbit averages on Amazon. This may be due to the fact that the low cost Xiaomi product is home-based in China. Relative to the low-end product that Xiaomi delivers, Fitbit would be far superior in consumer reviews. This graphic from the same page shows an impressive 92.73% of Chinese gave Fitbit a 5-Star review out of 5 possible stars. Fitbit is being very well received in the APAC market with a population of over 3 billion people. The coming growth in sales that CEO Park stated will be, "Amazing international growth ahead for Fitbit" is not factored into the current price of the stock with a forward PE of only about 11. This forward multiple could easily, and probably should, triple. Fitbit is doing exactly what you would want a smart, future-focused, growth stock to do: Reinvesting substantially into securing its first-mover advantages via global marketing to build marketshare and ramping up R&D sharply. Fitbit is going for the jugular vein of competitors to dominate wrist wearables globally, while Wall Street is asleep and values the company at a bizarrely cheap forward PE of only about 11. We all know that change is inevitable. And we believe that the wearables revolution is much further advanced than many investors realize. Most importantly for investors, the timing of the start of this epic bull market in wearables that we believe will lift the three major stock market indices of the Dow, S&P 500, and NASDAQ to a chain of multi-year new highs will begin... well, it has already begun. Here are a few similarities between early Apple Computer and today's Fitbit: • Both companies were/are leaders of a technology revolution; • Both companies were/are first movers in their categories; • Both companies were/are pure plays in their technology; • Both companies were/are pioneers in their technology; • Both companies were/are investing heavily in R&D; • Both companies were/are busted IPOs; • Both companies were/are leaders in market-share for their categories, although Apple quickly lost that lead to IBM; • Both companies had/have brilliant and successful CEOs but they received heavy criticism in their early days; • Both companies experience a strong degree of brand loyalty and acceptance from consumers on an emotional level; • Both companies are headquartered in California less than an hour down Highway Route 101 from each other; • Both companies ran Super Bowl commercials fairly soon after coming public. Apple's cash flow from earlier products lead to a breakthrough product that at the time was revolutionary: a wearables music player called the iPod. Soon to be followed by the iPhone, iMac, iPad, and the rest is corporate and shareholder success history. What breakthrough innovations will the growing, heavy, R&D spend at Fitbit deliver? When will Wall Street realize that mHealth is a huge, multi-year macro-trend that will deliver strong growth to pioneering companies like Fitbit for years and probably decades? One of the most exciting elements of Fitbit's growth strategy may be it's pioneering role in the development of the nascent mHealth and corporate wellness spaces. Fitbit Group Health / Wellness Insighter are initiatives that cement Fitbit's future in what Park calls a "Digital health and fitness company". Fitbit recently reported the launch of Fitbit Group Health, which brings together the offerings that Fitbit provides to corporate wellness partners, weight management leaders, insurers, and clinical researchers. The firm is also introducing Wellness Insighter, a new service for its consumers that assists corporate wellness leaders in validating corporate wellness investments with data that can be compared against that of industry peers. As the leader in the connected health and fitness market and a trusted brand in the industry, Fitbit has driven innovation in corporate wellness programs over the last six years with the company's corporate wellness offering now adopted by over 70 of the Fortune 500. Rise of the Wearables Today, the critics of wearable mHealth devices like the product line of Fitbit wearables and the accompanying Fitbit ecosystem are missing a few key points. History shows us that the so-called experts are often wrong. During the early days of the personal computer there were many naysayers who were unable to envision the future of the personal computer industry. Consider these quotes from past experts: • "There is no reason anyone would want a computer in their home." Ken Olsen, Founder of Digital Equipment Corp, 1977. • Or IBM's Thomas Watson who infamously said: "I think there is a world market for maybe 5 computers." • You will find a few more classic gems here in the 7 Worst Tech Predictions of All Time from PCWorld. While the "experts" often miss the obvious even when it is right in front of them, we can all agree that the times they are a changin'. The Macro-Trends Driving The Growth of mHealth Wearables The macro-trends driving the changes in healthcare expenses, financial budget deficits, and insurance costs are undeniable and unstoppable. We have a choice to either embrace and prosper from these changes, or to deny and get run over by the inevitable. Either way, wearables are already here and growing in strength daily. Wearables will only grow more essential to each of us in the decades ahead as innovation and macro-trends drive this technology forward at a rapid pace. mHealth wearables devices are a means to implement preventive healthcare. Preventive healthcare is becoming a necessity because the rapidly rising costs of sick-care are too expensive. Sick-care is the strategy that we have been employing in the past while waiting for individuals to develop serious health issues that are very expensive to treat. The strategy of preventive healthcare is a partial solution to negate the costs that are increasing annually around the world from obesity-related illnesses. The obesity epidemic is resulting from our sedentary lifestyle and poor nutrition choices. Fitbit is already the world's largest collector of biometric data stored on Fitbit's servers. This data is increasingly of interest to employers, insurers, healthcare providers, and governments. Increased daily activity equals greater wellness and less sick-care costs as well as lower insurance premiums. Saving money and avoiding insolvency is a driving macro-trend behind the rise of mHealth wearables. So corporations and governments now understand that they can decrease sick-care expenses, lower healthcare and insurance costs, and improve quarterly bottom-line profits all as a result of implementing the Fitbit ecosystem. Wow. This explains why Fitbit's enterprise segment is growing so rapidly as they are enrolling corporations and governments in their wellness program worldwide. Sick-care costs are unsustainable and this problem is literally leading nations like the U.S. down a very predictable path to financial insolvency. Because these coming financial crises are extremely serious issues, national leaders understand that preventive healthcare efforts are a partial solution to avoid governmental insolvencies. Wearables are becoming an increasingly essential item for each of us in our daily lives. Those who view the future of wearables like Fitbit as an optional item or a fad are out of touch with the world-view of governments, corporations, insurers, and healthcare providers who understand the importance of preventive healthcare and the role being played by companies like Fitbit as the wearables industry leader and pioneer. mHealth wearables are now becoming an essential necessity to implement for individuals, corporations, and governments. The Fitbit ecosystem is the leading mHealth wearables device being welcomed enthusiastically by consumers, corporations, insurers, healthcare provider, and governments worldwide. mHealth wearables will likely become an essential item and a necessity for all of us in our personal, professional, and national citizenry roles. This is because the rapidly rising costs of healthcare are unsustainable. There is a clear vision for Fitbit's pathway forward as a hugely successful company during the years ahead as it continues to pioneer the mHealth wearables category. Historically, first-mover advantages last at least a few years and sometimes even a decade or more. Forward-thinking people can envision Fitbit continuing its present strong growth within the wearables category that is also growing at a strong pace for many years to come. Fitbit's recent inclusion in the Russell Index is a good first step made just a few months after its IPO. With continued growth, innovation, and successful new products could we one day see Fitbit become a hugely successful company and a member of the S&P 500? The evolution of wearables devices is happening rapidly and the future for this category is exciting. How powerful ...
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School: University of Virginia



Fitbit Company Stock Analysis
Institutional Affiliation




Investment in the stock market can be said to be the fastest way to get high return on the
investment. This requires well calculated risks either through having a variety of stocks within
your portfolio or investing in low risks stocks. It is worth noting that the higher the risk in an
investment, the higher the returns (Friedlob & Schleifer, 2003). Portfolio asset investors must be
able to evaluate and assess the market for their stocks and only invest on assets whose returns
create value for the investor. In most cases, people say that stock investment require speculation
but the reality of the matter is that investment in stock is all about market analysis and being able
to evaluate and keep track of the market trends by undertaking a trend analysis (Friedlob &
Schleifer, 2003).
Fitbit Inc is an American company manufacturing wearable computer devices which are
aimed in assisting in the implementation of preventive healthcare. The company was founded in
2015 ...

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Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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