How Will Fitbit (FIT) Stock React to Coin Deal ?
NEW YORK (TheStreet) -- Fitbit (FIT) - Get Report shares are slumping 1.95% to $13.86 on Thursday, the day after the wearable tracking device maker announced that it acquired Coin, a Silicon Valley-based financial technology startup.
The stock is changing direction from yesterday's gains immediately following the news.
What this means for users is that that their Fitbit devices would be used to not only track movements but also to make payments.
"We are focused on making wearable devices that motivate people to reach their health and fitness goals, and that also make their lives easier with the smart features they need most," Fitbit CEO James Park said.
While Fitbit is not the first wearable technology maker to take these initiatives, the company is now in a better position to compete with other rivals who have already began integrating payment functions into their fitness bands.
Looking ahead, the payment technology will not be part of the company's product lineup this year, but it could be used in future gadgets, Fitbit noted.
