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Analyst: Fitbit Will Be Acquired In 2017, But Not By Who You Think

From According to analyst Andy Swan, Fitbit Inc (NYSE:FIT) will be acquired next year by an unlikely suitor that almost no one sees coming.

The Likefolio and myTrade founder posted the following today on

Fashion companies, watch makers…even Google. Too easy. I think 2017 is the year Fitbit gets gobbled up, but by someone we don’t see coming. Someone who figures out that activity and health data (and its supporting social networks, HINT HINT) would be extremely valuable insight and make their core product more engaging and fun. Guesses? Facebook, Under Armour, Disney, or Humana.

Fitbit almost certainly needs to find a buyer. Its share price has plunged nearly 75% over the past year, and are off 84% from their all-time highs set soon after the company’s IPO last year. Whoever ultimately steps up — if anyone (remember Twitter’s failure to find a suitor?) — will need to make very high use of that valuable health and activity data that Swan references above.

Fitbit likely moved a lot of units this holiday season, but it simply won’t be enough. The company’s revenue growth has stalled, and without any obvious catalysts on the horizon, we wouldn’t be surprised to see the company begin shopping itself sooner rather than later.

Fitbit Inc (NYSE:FIT) was trading at $7.57 per share on Wednesday morning, down $0.26 (-3.32%). Year-to-date, FIT has declined -74.42%, versus an 11.77% rise in the benchmark S&P 500 index during the same period.

FIT currently has a POWR Rating of D (Sell), and is ranked #30 of #32 ETFs in the Athletics & Recreation category.

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