Fitbit Purchase Makes More 'Sense' for Google Than Creating Devices, Says Analyst

It would “make sense” for Google to buy Fitbit “rather than create its own devices and collect years of data,” Wedbush Securities' Michael Pachter wrote investors Tuesday. Their partnership, announced in April 2018 (see 1804300010), lets them compete with Apple in health, said Pachter: “If Google wants to expand in MedTech and go head-to-head with Apple, it would make eminent sense to purchase Fitbit," said the analyst. It's taking Fitbit longer than expected to expand services that could return the company to profitability, while device sales “are stagnating as both the novelty wears off and competition increases,” said Pachter. The companies didn't comment Monday (see 1910280043). Fitbit shares closed up a second day, gaining 7.3 percent Tuesday to $6.05.