Technology

Why Does Google Want to Buy Fitbit?

Google’s parent company Alphabet GOOGL has reportedly made an offer to buy Fitbit FIT. Shares of FIT surged in the wake of the reports, and the stock closed up 30.5% on Monday.

Fitbit is best known for its fitness trackers and other wearable devices, but has struggled lately due to weak sales of its new lightweight watch. An Alphabet acquisition could give the company a much needed boost. As for the search giant, scooping up Fitbit would potentially help it become a bigger player in the wearables industry, and help Alphabet compete with Apple AAPL in the health and fitness space.

Right now, Google does not make a smartwatch, but it licenses its Wear operating system to Fossil FOSL, LG LPL and other companies who manufacture wearables. Rumors of a Google-branded Pixel smartwatch have been floated for years, and could help pump up Alphabet’s hardware business.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>


Click to get this free report

Alphabet Inc. (GOOGL): Free Stock Analysis Report

Apple Inc. (AAPL): Free Stock Analysis Report

LG Display Co., Ltd. (LPL): Free Stock Analysis Report

Fitbit, Inc. (FIT): Free Stock Analysis Report

Fossil Group, Inc. (FOSL): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Technology Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More