Alphabet‘s (GOOGL) Google on Thursday said it has closed the acquisition of Fitbit (FIT) for $2.1 billion, giving it a top brand in the health and fitness markets vs. Apple (AAPL). Google stock edged down on the news.
Google announced the deal on Nov. 1, 2019, but European regulators didn’t approve the acquisition until late 2020. To get approval, Google agreed to keep Fitbit user data private and not use it for targeted advertising.
“This deal has always been about devices, not data, and we’ve been clear since the beginning that we will protect Fitbit users’ privacy,” Rick Osterloh, chief of Google’s consumer hardware business, said in a blog.
In addition, Fitbit recently expanded from fitness trackers into smartwatches. Also, its new Fitbit Sense smartwatch features stress management tools and an ECG app to assess heart rhythm for signs of atrial fibrillation. Right now, Apple dominates the smartwatch market, with Samsung a distant second.
Google Stock: What Will Happen To Fitbit Brand?
Google stock slipped 0.9% to close at 1,730.92 on the stock market today.
Google will likely keep the Fitbit brand separate from its other consumer hardware products. Another option would be marketing “Made by Google” wearables, analysts say.
Further, Google’s Relative Strength Rating is only 54 out of a possible 99, according to IBD Stock Checkup. Also, the best stocks tend to have an RS rating of 80 or better.
According to IBD MarketSmith analysis, Google stock has formed a flat base with an entry point of 1,843.93.
Google stock trades about 5% below its entry point.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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