Update at market close: Fitbit closes flat at $29.68 a share.
NEW YORK — This morning Fitbit (FIT) began trading on the New York Stock Exchange at $30.40 per share. Yesterday the company set its opening price at $20 a share.
Throughout the day the FIT trading price held around $30 per share, ending the day nearly flat at $29.68 per share. The stable trading price means that the opening price was an accurate reflection of the market demand for FIT stock.
“Fitbit is at a nexus of technology and health, which are interesting growth themes that people want to invest in,” said Doug Chu, head of Silicon Valley listings at NYSE.
The fitness wearables company expected to raise $732 million during its public offering and is now being valued at more than $4.1 billion.
Investors are excited for Fitbit because the company is making a lot of money. In 2014, the company reported $745.4 million in revenue, and in the first three months of this year, Fitbit is already earning $48 million in revenue.
Fitbit holds roughly 85 percent of U.S. marketshare, according to market research firm NPD, as mentioned in Fitbit’s SEC filing. However, it might not be able to hold that position. Apple’s new smartwatch is a formidable challenger for Fitbit’s crown, and there are a slew of other devices that are slowly nibbling away at Fitbit’s customer base.
Still, all investors are concerned with is that Fitbit’s growth continues. Given that the wearable market is just getting started, Fitbit should have plenty of opportunity to do just that.