Citron's Andrew Left Sees Google Eventually Buying Fitbit

The transcript discusses Fitbit's market challenges and potential as a Medtech company. Andrew Left from Citron Research highlights Fitbit's strategic shift towards Medtech, emphasizing its partnerships with Dexcom and Google. The discussion covers Fitbit's R&D investments compared to competitors like Garmin and Inogen, and the potential for acquisition by tech giants like Google or Apple. The conversation also touches on Fitbit's execution capabilities and market opportunities, particularly in diabetes management. The conclusion suggests a positive future outlook for Fitbit, despite current market skepticism.

What is the main reason Andrew Left believes Fitbit has potential as a Medtech company?

• Its high sales of wristbands

• Its strong brand equity

• Its recent IPO success

• Its partnerships with Dexcom and Google

How does Fitbit's R&D spending compare to Garmin's in the fitness category?

• Garmin spends significantly more

• Fitbit spends significantly more

• Fitbit spends significantly less

• Both spend the same amount

Which company does Andrew Left believe is most likely to acquire Fitbit?

• Google

• HTC

• Samsung

• Apple

What is the potential market trend mentioned for wearables?

• They will outsell smartphones

• They will outsell laptops and tablets

• They will only be used for fitness

• They will become obsolete

Why might Google prefer acquiring Fitbit over maintaining a partnership?

• To expand into the smartphone market

• To reduce R&D costs

• To increase competition with Apple

• To avoid future licensing fees

What is a major concern about Fitbit's current business model?

• High services revenue

• Excessive R&D spending

• Lack of brand recognition

• Low services revenue

What is a positive aspect of Fitbit's financial situation according to Andrew Left?

• Declining stock price

• High debt levels

• Sitting on a stockpile of cash

• Raising new capital