Out Fox The $treet

Alphabet made an offer to buy Fitbit with no announcement of a finalized deal. Fitbit is shifting into Premium Service and medical devices, making the stock more appealing. Fitbit is unlikely to accept a deal for under $10, making an agreement unlikely. The stock likely trades lower again on a failed deal. Fitbit  (NYSE: FIT ) surged Monday on  reports  that  Alphabet  ( GOOG ,  GOOGL ) is looking to acquire the fitness tracking company in order to get into healthcare wearables. The stock ended up above $5.50 for a 30% gain on the day, but investors have to question whether CEO Park will accept a deal at these prices and whether one even wants a deal below $10, if at all. My  previous research  has highlighted the reasons the stock has the potential for far more value. Read the full article on Seeking Alpha.  More commentary - WhoTrades   Disclosure: Long FIT. Please review the disclaimer page for more details....

After reporting Q4 results, Fitbit (FIT) is down substantially. In not a huge surprise, the wearables company failed to satisfy the market with 2019 guidance after the stock had a big run up to nearly $7.

Wearables have the potential of moving the needle at Apple. Adding health monitoring to AirPods expands the potential shift to medical devices. Medical device stocks trade at much higher valuations. Anything driving sales higher is a plus for a stock only trading an EV/S multiple of 10x. For a company with a revenue base of over $250 billion,   Apple   ( AAPL ) struggles to find opportunities that will move the needle. One potential revenue source is in medical devices as the tech giant moves into wearables that function as tech devices and health monitors. My   investment thesis remains bullish on the stock around $150. Read the full article at Seeking Alpha.  Disclosure: Long AAPL, FIT. Please review the disclaimer page for more details.   

Fitbit (FIT) completed another successful holidays where their app ranked in the top 5 locations on the iPhone in 6 countries. In the Health & Fitness category, the Fitbit app reached the top rank in 29 countries.

The recent Gartner forecast on global wearables shipments is ultra-bullish for Fitbit (FIT) . The research firm forecasts shipments to triple from 141 million in 2017 to 453 million in 2022. Fitbit is a big player in the Smartwatch category and Gartner specifically points out the promises of medical devices what the fitness tracking company is just now entering. The best story for investors is that the stock only trades at a market value of $1.3 billion with a sizable balance sheet. Risk always exists with a stock, but Fitbit offers an incredible reward, if the company gets the wearables trend correctly over the next few years. Disclosure: Long FIT. Please review the disclaimer page for more details. 

Qualcomm has growth driver in the Internet-of-Things (IoT) market. The market will start looking beyond just mobile communications as FY19 starts. The $7 EPS target is a base case for FY19 with growth areas providing upside potential in the future. As   Qualcomm   ( QCOM ) looks to move away from the termination of the   NXP Semi.   ( NXPI ) merger, a big key is whether the company can shift away from reliant on the maturing wireless sector. The NXP Semi. deal promised a shift into connected cars, but Qualcomm alone is making a strong push into the promising IoT sector providing a solid long-term boost to my   investment thesis on the cheap stock. Read the full article on Seeking Alpha.  Disclosure: Long QCOM. Please review the disclaimer page for more details.   

The story surrounding Fitbit (FIT) remains one of getting the growing wearables market in tune with product development. The stock remains one worth the gamble after reviewing Q4 market data.

While the stock of Fitbit (FIT) has traded in the dumps for the last couple of years, The company has quietly acquired a lot of technology. In that regard, the fitness wearables company acquired Twine Health for the health coaching platform.

As predicted, Fitbit dropped after the stock reached $50 despite strong Q2 earnings. The company is building a strong network that compels customers to remain in the ecosystem. The valuation proposition remains unappealing even after the recent to drop to $42. As predicted after the IPO, Fitbit (NYSE: FIT ) it a wall when the stock surged above $50 prior to the Q2 earnings report . At that price, the stock had a valuation in excess of $12 billion based on 248 million shares outstanding making it difficult for investors to see positive gains. Please read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details.