Fitbit: Taking The Leap Of Faith

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About: Fitbit, Inc. (FIT), Includes: AAPL
by: The Happy Fund
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The Happy Fund
Long only, long-term horizon, portfolio strategy, asset allocation
Summary

Fitbit's share price has collapsed close to 90% from its peak levels in 2015, leaving investors badly bruised.

Late to consider the transition to smartwatch and spending big to keep pace with a changing market, the company fell rapidly out of favour.

But this was not the end for the once-beloved fitness-tracker, which ranks comfortable as the second best selling smartwatch worldwide in 2018.

Poised to grow 20-25% p.a. in the next 3 years, the wearables industry's huge opportunity has become Fitbit's home turf once again, with healthcare finding strong momentum.

At the current share price levels, the company's rejuvenated prospects and solid balance sheet seem heavily undervalued. The stock is a buy from here.

Investment thesis

Fitbit Inc.'s (NYSE:FIT) mission statement is to make everyone in the world healthier. Unfortunately, the one thing it's not making any healthier so far are the investments from its shareholders.