Shares of Fitbit surged on their first day of trading at the NYSE, as investors eagerly bought of shares of the fitness tracking device maker. Bobbi Rebell reports.
Fitbit was off and running in its first day of trading. The maker of the popular wearable fitness tracking devices now trading under the ticker FIT. Fitbit's colorful wireless wrist bands and clippable devices track heart rate, calories, sleeping patterns and step counts. REPORTER BRIDGE: BOBBI REBELL, REUTERS CORRESPONDENT (ENGLISH) SAYING: "After pricing at $20 a share, that is above the expected range, shares of Fitbit began trading right here, at the New York Stock Exchange, today. The first trade more than $30 a share, that is an increase of more than 50 percent, right out of the gate." Fitbit is the second U.S. wearable technology company to go public, following action camera-maker GoPro's hugely successful listing around this time last year. Renaissance Capital's Kathleen Smith: SOUNDBITE: KATHLEEN SMITH, CHAIRMAN, RENAISSANCE CAPITAL (ENGLISH) SAYING: "I think that investors are really interested in this company just from the get go because in eight years they have put up a billion in revenue. That is pretty incredible and they have gained such dominant market share, and, on top of that, they are profitable, so that is such a key combination that attracts investors to this company." Fitbit says it has an 85 percent share of the U.S. market, citing data from market research firm NPD group. The market for fitness devices is exploding. It's expected to grow from about 15.4 million units in 2014 to about 52 million in 2019, according to research firm IDC. And that's brought in competition. In addition to rivals like Garmin, Jawbone and Misfit, Fitbit now faces the Apple Watch which sports several health-related features and apps Fitbit Chief Revenue Officer Woody Scal. SOUNDBITE: WOODY SCAL, CHIEF REVENUE OFFICER, FITBIT (ENGLISH) SAYING: "Fitbit really is a different company and a different product than Apple Watch. We have a range of products. Our prices go from $59 in the U.S. all the way up to $249. We sync to many more platforms that just iOS so everybody can enjoy Fitbit. And we have the largest user base. As of March 31st, Fitbit has sold more than 20 million devices. Among the big winners from the IPO: co-founders James Park and Eric Friedman. They reaped about $31 million.