Fitbit Gains Most in Three Months After App Tops Apple Chartby
Earlier, Fitbit cut sales forecast for holiday season
Topping charts suggests more people bought item as gifts
Fitbit Inc., the maker of wearable health trackers, gained the most in three months after its mobile application topped the charts of free apps in Apple Inc.’s iOS app store.
Gaining ground in rankings during Christmas weekend means more new users downloaded the app, which suggests the devices were a popular present. Shares jumped 7.4 percent, the most since September, to $7.83 in New York. Re/Code reported earlier that Fitbit’s mobile app rose to the No. 1 spot.
Fitbit, the market leader for wearables, is struggling to maintain its top spot, facing slowing demand and heavier competition from Apple on the premium end as well as cheaper knockoffs. Last month, after releasing its new line of wristbands, Fitbit cut its sales forecast for the holiday season -- when retailers generate much of their sales. Analysts downgraded the company and the stock tanked. Success during the holiday season could ease some analyst and investor worries around the company’s growth prospects.