Shareholders of Fitbit will receive $7.35 cash for every FIT share held. Fractional shareholders will receive cash proportional to their holdings of FIT at the time of the acquisition. This will be reflected in your Cash App balance upon the company's completion of its distribution to shareholders.
Why is Fitbit stock untradeable?
Answer (1 of 2): If you do nothing, then when the sale closes the shares will be removed from your brokerage account and you’ll get cash instead. This will be $7.35 per share you own. This is probably the right way to go if you don’t have anything else to do with the money.
How to buy Fitbit stock?
Jan 15, 2021 · Because Fitbit stock is now untradeable, it will automatically convert to cash. Consequently, Fitbit stock will be removed from your brokerage account. You can decide whether to use the cash to buy...
How much does Fitbit Pay?
Sep 13, 2017 · If you're buying Fitbit stock today, you're betting that the company can return to growth. If it succeeds, the stock could be in for quite the rally.
What is the market share of Fitbit?
The news sent Fitbit stock soaring 15.5%. GOOGL stock traded higher by 1% on a strong day for the market. Neither the deal’s $2.1 billion price tag nor Fitbit’s $313 million in revenue will ...
What happens to Fitbit stock after buyout?
As for the stock owner, your shares will either be converted to fair amount of Google that correlates your shares of Fitbit or your account will show the shares disappear and they will be replace by the cash value of your shares.
Can you still buy Fitbit stock?
Fitbit stock can be bought through any reputable broker with access to trade stocks listed on the New York Stock Exchange (NYSE). If your objective is to buy FIT as an investment and hold the stock in a trading account for long term capital appreciation, then you could open an account with a discount broker.May 12, 2021
What happens if Google buys Fitbit?
“Google will continue to protect Fitbit users' privacy and has made a series of binding commitments with global regulators, confirming that Fitbit users' health and wellness data won't be used for Google ads and this data will be kept separate from other Google ad data”.Jan 14, 2021
Does Fitbit have a stock symbol?
Fitbit Inc (FIT)Jan 14, 2021
What is the price of Fitbit stock?
Performance OutlookPrevious Close5.34Day's Range5.34 - 5.9852 Week Range5.12 - 6.36Volume1,106Avg. Volume1673 more rows
Who is Fitbit owned by?
GoogleFor the last 14 years, James Park has lived and breathed Fitbit — the company he co-founded, which was bought by Google in November 2019 for $2.1 billion.Aug 3, 2021
Who just bought Fitbit?
GoogleGoogle has closed its deal to buy Fitbit, the tech giant announced Thursday. The company announced in November 2019 plans to acquire the fitness tracking company to bolster its wearable capabilities. Google said it would acquire Fitbit for $7.25 per share in cash, valuing the company at $2.1 billion.Jan 14, 2021
Who owns Fitbit now?
GoogleFitbit / Parent organizationGoogle LLC is an American multinational technology company that focuses on artificial intelligence, search engine, online advertising, cloud computing, computer software, quantum computing, e-commerce, and consumer electronics. Wikipedia
How much did Google buy Fitbit?
Google agreed to purchase Fitbit for $7.35 per share , valuing the fitness specialist at $2.1 billion. Google fought Facebook for the chance to buy Fitbit. In the end, it agreed to spend more on the deal than it had intended.
Is Fitbit a part of Alphabet?
Moreover, Fitbit should be a boost to Alphabet’s digital health business. Alphabet is the parent company of Google, self-driving and ride-hailing service provider Waymo, and life science startup Verily. Digital health is another promising space for Google and Alphabet in their bid to diversify outside advertising.
The stock is cheap if you assume that growth will return. But growth depends on new products that may not succeed
Tim writes about technology and consumer goods stocks for The Motley Fool. He's a value investor at heart, doing his best to avoid hyped-up nonsense. Follow him on Twitter: Follow @TMFBargainBin
There's value in Fitbit stock
Plunging sales over the past few quarters have rendered Fitbit an unprofitable enterprise. Over the past 12 months, the company has posted a GAAP net loss of $238 million on about $1.73 billion of sales. Fitbit has been cutting costs, even laying off employees earlier this year. But sales will need to rebound for the company to stop burning cash.
The trouble with Ionic
There is no value case for Fitbit stock if the company never recovers, though. Ionic, Fitbit's first full-featured smartwatch, is at the center of the turnaround strategy. Fitbit is launching other new products as well, including the Fitbit Flyer wireless headphones, but all eyes will be on the Ionic when it launches in a few weeks.
A Path Forward for Fitbit
First of all, FIT stock investors should be thrilled with the buyout. Alphabet may have just saved Fitbit and their investment. Sure, the $7.35 per-share buyout price is well below Fitbit’s initial public offering price of $20 back in 2015. But FIT stock has traded as low as $2.81 in recent months.
Why Would Google Buy a Doomed Company?
On its own, Fitbit’s business model and lack of resources to compete with Apple may not have been a winning recipe. But a company the size of Google doesn’t necessarily care about Fitbit device sales growth or profits.
How to Play GOOGL Stock
In a nutshell, the biggest takeaway from the Fitbit deal for Google stock investors is that Fitbit puts Google in a better position to take on Apple.
Who is Evan from Motley Fool?
Evan is a Senior Technology Analyst at The Motley Fool. He was previously a Senior Trading Specialist at Charles Schwab, and worked briefly at Tesla. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.
Does Fitbit work with Apple Watch?
The narrative has really shifted ever since Apple jumped in with the Apple Watch. Fitbit historically had done really well with these fitness trackers. But then, the whole market started to shift on these wearables, from basic trackers to more full-featured smart watches.
Is Fitbit a publicly traded company?
Fitbit debuted several years ago, and it was a very quickly growing, profitable company that was the de facto name in its space. Things have not gone particularly well for them as a publicly traded business.
What happens when a stock is bought out?
When the buyout occurs, investors reap the benefits with a cash payment.
Why does the price of a stock go up?
The price of the stock may go up or down based on rumors regarding the progress of the buyout or any difficulties the deal may be encountering. Acquiring companies have the option to rescind their offer, shareholders may not offer support of the deal, or securities regulators may not allow the deal.
What happens when a company is bought?
When the company is bought, it usually has an increase in its share price. An investor can sell shares on the stock exchange for the current market price at any time. The acquiring company will usually offer a premium price more than the current stock price to entice the target company to sell.
What are the disadvantages of buying out a company?
A disadvantage to shareholders in a company involved in a buyout is that they are no longer shareholders in that company. This means if the long-term value exceeds the cash price an investor receives, they will not be able to participate or reap any rewards in the future. Investors will usually be responsible for paying income tax ...
What is leveraged buyout?
The share exchange is rarely one-for-one. Leveraged buyout - an acquiring firm can use debt as a means to finance the target company. Cash - shares are purchased at a proposed price and are no longer in the shareholder's portfolio.
