Fitbit: Premium Services To The Rescue

Fitbit announces a major program with the Singapore Health Promotion Board.
The deal has an initial value listed at $5 million with a CEO prediction that it would reach up to $120 million annually.
The stock won't continue trading at a 0.15x EV/S multiple with substantial services revenue growth.
The market is so negative on Fitbit (FIT) that a transitional deal with a foreign government only led to a 2% daily gain for the fitness tracking stock. The company remains in the process of shifting to a medical device and premium services company while the market completely ignores the move due to recent weak sales. My investment thesis remains very bullish on the stock due to the deep value and potential for services revenue growth that leads to multiple expansion.
Read the full article on Seeking Alpha. 
More commentary - Fitbit Relaunch
Disclosure: Long FIT. Please read the disclaimer page for more details. 

Comments

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