Why Shares of Fitbit Inc Jumped 24% in March

Fitbit Blaze has been a hit with consumers. Image source: Fitbit.

What: Shares of Fitbit Inc popped 24% in March, according to data provided by S&P Global Market Intelligence, after announcing impressive sales figures for new products.

So what: Late in the month, Fitbit announced that the Blaze and Alta products have achieved more than 1 million shipments in the first month of availability. That's an incredibly fast pace of adoption and with prices starting at $199.95 for the Blaze and $129.95 for the Alta, there will be a big impact on the company's income statement too.

Fitbit also said that its products are also now compatible with Amazon.com's Alexa product. This is a nice tie in to the smarter home and lifestyle of the future.

Now what: There was a lot of concern that Fitbit would end up losing sales to devices like the Apple Watch or Samsung Gear, but the company appears to be holding up well. If new products can catch on there will be a big case to be made that the activity tracker company can fit in the market with bigger players. And with shares trading at just 11 times forward earnings estimates, these signs that new products are catching on could make for a great investment long-term.

The article Why Shares of Fitbit Inc Jumped 24% in March originally appeared on Fool.com.

Travis Hoium owns shares of Apple. The Motley Fool owns shares of and recommends Amazon.com and Apple. 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.