Why Fitbit, Inc. Stock Popped 13.1% Today

By Markets Fool.com

The Fitbit Blaze is enjoying strong early demand, Image source: Fitbit,

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What:Shares of Fitbit rose 13.1% Thursday after the health-centric technology company revealed it has sold more than one million Fitbit Blaze and 1 million Fitbit Alta devices in their first month of availability.

So what: The former, in particular, may come as a surprise to many industry watchers, especially considering this makes Fitbit Blaze the No. 1 best-selling device in both Amazon's smart watch and heart monitor categories. Also recall Fitbit stock got clobberedin January afterFitbit introduced Blaze at this year's Consumer Electronics Show,partly as underwhelmed investors feared its failure to allow third-party apps would prove its undoing.

Now what: In retrospect, however, this isn't entirely shocking. After all, the devices have garnered largely positive reviews from both users and critics alike. And when Fitbit announced decent fourth-quarter earnings last month, the stock plunged after the company blamed soft earnings guidance on plans to invest heavily in sales and marketing related to both Blaze and Alta.

At the very least, Fitbit shareholders should be encouraged those marketing investments appear to be yielding fruit -- even if it means the company is sacrificing profits in the near term. So while I'm personally content continuing to watch Fitbit shares from the sidelines until we see more evidence this early demand is sustainable, I can't blame the market for bidding shares up today.

The article Why Fitbit, Inc. Stock Popped 13.1% Today originally appeared on Fool.com.

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Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.