Fitbit's Stock Surges After Pacific Crest Says Sales Have Been 'exploding'

Fitbit Inc.'s stock surged 3.4% in premarket trade Monday, after Pacific Crest Securities analyst Brad Erickson said the fitness-band maker's holiday sales have been "exploding" since a weak Black Friday performance. Erickson said his in-store checks suggest a "substantial increase" in sales volumes from a month ago, nearly a third of stores have seen temporary sell outs and market share remains dominant. "We are obviously encouraged by seeing in-store demand come back so strongly as a proxy for overall demand," Erickson wrote in a note to clients. He said he was also encouraged that competitors, such as Garmin Ltd. and Apple Inc. , have been discounting their fitness products while Fitbit has not. Erikson said expected new products, to be introduced at the Consumer Electronics Show in Las Vegas in early January, could provide a sales boost. Fitbit's stock has tumbled 27% over the past three months through Friday, while the S&P 500 has gained 2%.