Fitbit, San Francisco, debuted on the New York Stock Exchange Thursday, opening at $20 per share. By the end of the day, stocks were trading at $29.28 per share, a 48 percent increase.
The share prices are an increase over the $14 to $16 per share that Fitbit initially projected its shares would start at and an increase over the $17 to $19 per share that the company later revised its share prices to.
"The much-anticipated IPO of fitness wearable maker Fitbit came to market on Thursday and the reception from investors was one of sheer elation," Josh Arnold, an independent trader of options and stocks and an analyst in the banking space, wrote in a commentary on Seekingalpha.com.
The activity tracking device company had revenue of $745 million in 2014, an increase of 174 percent compared to 2013, according to its IPO filing. It had profits of $131.8 million. Sales in first quarter 2015 were $336.8 million, three times higher than the same time last year. The company shipped 3.9 million units in first quarter 2015 compared to 1.7 million in first quarter 2014, according to market research firm International Data Corp. (IDC).
Fitbit's recently released three new products, its Surge, Charge and Charge HR. Those products, along with its Flex wristband and clip-on trackers One and Zip, have helped Fitbit wrap up 34.2 percent of the activity tracker market in the first quarter, according IDC.
Evan Buck, a contributing writer to SeekingAlpha.com, wrote: "We are standing on the cusp of a coming wearable tech revolution, and Fitbit is in a great position to profit from this developing market. Although Apple Watch will appeal to many in the high-end market, Fitbit will be able to continue gaining momentum with its more reasonably priced products."
However, not all is rosy with Fitbit, as it faces two lawsuits from competitor Jawbone, which claims Fitbit stole employees and trade secrets from Jawbone and violated Jawbone's patents.
The profitability of the two companies is vastly different, according to an article on Forbes.com. Fitbit, which was founded in 2007, raised $43 million in capital two years ago, but the company only touched about $22 million of it, Fitbit CEO and co-founder James Park told Forbes.com.