NEW YORK (TheStreet) -- Fitbit (FIT) shares continued to outpace the market, and investors seem to believe there's more room to run.
Shares of the San Francisco-based Fitbit were rising another 5% in early Friday trade, following a near 50% gain on its first day of trading on Thursday, valuing the company at slightly more than $6 billion.
Traders on StockTwits, a social networking platform geared towards traders and investors, were bullish on the company's prospects, both in the short and long-term, as the company takes on the wearable technology space.
$FIT liking this volume so far— ryan (@BlackPacificCapital) Jun. 19 at 10:17 AM
$fit HGUE ipo, wanna be in with some shares for longer term trade here— AG (@ag2) Jun. 19 at 10:24 AM
$FIT Glad I never sold this one. Those 50mln shares yesterday are looking for a profit— JXM Financial (@JayStrauss) Jun. 19 at 10:28 AM
Shares of Fitbit closed the regular session at $29.68, good for a 48.4% gain over its $20 initial offering price, valuing the company at $6.08 billion. More than 50 million shares exchanged hands on its first day of trading.
The company's financial picture is strong, with gross margins approaching the 50% level, rare for a consumer technology company. Apple (AAPL), which is generally considered to have high gross margins, had gross margins of 40.8% in its fiscal second quarter.
In 2014, the company ended the year with $745.4 million in revenue, generating net income of $131.8 million with adjusted EBITDA of $191 million. That's a significant improvement over 2013, when it earned $79 million on $271.1 million in revenue.
In the first three months of 2015, Fitbit said it generated $336.8 million in revenue, with net income of $48 million and adjusted EBITDA of $93.4 million.