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Here’s Why Fitbit Inc (FIT) Shares Are Were 3% on Wednesday

Fitbit Inc (FIT) - Alta

Fitbit Inc (NYSE:FIT) shares were trading up as high as 3% during Wednesday’s trading session. Despite the weak financial forecast for the company, investors are enthusiastic over the tech firm partnering with the Dana-Farber Cancer Institute. It’s apparent that the company may be moving beyond just consumer electronics.

Fitbit Inc Studying Breast Cancer Recurrence

In the last couple of weeks, Fitbit has been garnering headlines, and not for negative financial stories. Instead, Fitbit has generated media attention for a rape case and health news. It seems the firm is gaining more momentum from saving lives than selling its wearable tech devices.

Fitbit Inc (FIT) - Alta

And these developments may help drive the company’s shares, similar to what’s happening Wednesday.

Fitbit shares traded as high as three percent by midday close to $18. The reason for this is because it was reported that the firm is partnering with the Dana-Farber Cancer Institute. The two groups will start a 3,200-person study that examines how breast cancer recurrence is affected by weight loss in overweight and obese individuals.

A breast oncologist at Dana-Farber, Dr. Jennifer Ligibel, has been looking at the link between exercise and cancer risk. Studies have found a connection and have discovered breast cancer risk is lower for active women than inactive women. Meanwhile, obesity is a major factor for breast cancer recurrence. With this information, Ligibel decided to look deeper with the help of Fitbit.

Using Fitbit devices, Dana-Farber will hone in on women who’ve been diagnosed with breast cancer and are either overweight or obese. The study will see how weight loss regimens may reduce the risk of breast cancer recurrence.

Beginning in August, the study will last over six years and take place in the U.S. and Canada. Each study participant will be given a health education program and/or weight loss intervention program. These studies will be performed remotely through phone calls and Fitbit devices. The researchers will use the Fitbit Charge HR and the Fitbit Aria smart scale.

The first series of results will be released in two years.

One of the reasons why the firm was selected is because its devices are simple to integrate.

Woody Scal, the company’s chief business officer, confirmed that the tech firm’s devices are already used at more than 100 clinics across the U.S. Overall, Scal believes “this is more than just a study.”

Why Fitbit Inc is in the News

Did you know that you’re the most inactive between two and three p.m.? Your life of atrophy is affecting your health, and this is perhaps a crucial business model the firm needs to focus on.

Fitbit has been in the news this month for non-business stories. For instance, Fitbit has generated a lot of articles about how a rape case was dismissed after cops found new evidence on a Fitbit wristband. The complainant said a male intruder broke into her home when she was asleep and raped her. However, Fitbit data found that she had been awake and walking at that time.

A New Jersey man’s life was saved because of info from a Fitbit device. ER doctors received heart rate data from a middle-aged man, which allowed them to employ strategic treatment to save the man’s life after he suffered from a seizure.

These stories likely won’t be the end. Due to the ubiquity of Fitbit devices, as well as all of the other brands of wearable tech, more of these stories will be reported in the future. Whether it’s health or crime, the company will play an important role in finding out the truth and information.

Perhaps it’s an avenue Fitbit needs to explore to stay afloat.

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Andrew Moran

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