Fitbit shares had a tough year falling more than 50% but has surged 15 since June. The CEO of the company just described the company’s new purpose to “Mad Money” host Jim Cramer.
James Park said his product is very different from the Apple (NASDAQ: AAPL) watch.
He stated, “We are a fitness social network that is coupled to hardware, and we are on the cusp of transitioning the mission and purpose of our company from a consumer electronics company to a digital healthcare company.”
Fitbit aims to encourage users to become healthier and more active, whether it is through the use of its devices, software or services.
It is the social aspect of the product, according to Park, that drives Fitbit’s growth.
According to Fitbit, a third party study announced this week that for employers, the average cost of health care for employees that opted into a Fitbit wellness plan was 25 percent less.
Could things continue to majorly improve for Fitbit’s stock?
Disclaimer: We have no position in Fitbit Inc. (NYSE: FIT) and have not been compensated for this article.