The Med-Tech Big Data Revolution - Deep Value
Updated
Summary: Fitbit is in the early stages of its pivot from consumer products to med-tech. It has the distribution, sales, and brand recognition to position itself as a frontrunner in the med-tech big data revolution.
The main reason I think this is a huge sleeper is Fitbit is on the verge of switching to a SaaS company with recurring revenue. Key partnerships also give it a huge chance of being first.
In December 2017 Stockfish Chess AI was beaten by Googles AlphaZero's deep learning algorithm after it taught itself to play in only 4 hours. Stockfish searches 70 Million positions, Googles AlphaZero only 80 000. Alphazero won with 28 wins 72 draws 0 losses.
We are on the cusp of a biotech and infotech revolution and Fitbit is a company ready to take advantage.
- Google partnerships
- Uptrend in R&D (and double the spend compared to garmin)
- Recurring non-device revenue and big customers like insurance
Thesis: Starting with the big picture on a weekly time frame, we see this is a previous momentum stock that has clearly based. Most attractive is it clearly broke out on huge volume before retesting. Are we seeing disbelief?
This is a long term fundamental play. Next we will look at it from a closer perspective for entry and exit and confirmation strategies.
Exit Point / Timeframe: Long term fundamental growth play
Disclaimer: I am not a financial adviser and this is not financial advice. Trade at your own risk.
The main reason I think this is a huge sleeper is Fitbit is on the verge of switching to a SaaS company with recurring revenue. Key partnerships also give it a huge chance of being first.
In December 2017 Stockfish Chess AI was beaten by Googles AlphaZero's deep learning algorithm after it taught itself to play in only 4 hours. Stockfish searches 70 Million positions, Googles AlphaZero only 80 000. Alphazero won with 28 wins 72 draws 0 losses.
We are on the cusp of a biotech and infotech revolution and Fitbit is a company ready to take advantage.
- Google partnerships
- Uptrend in R&D (and double the spend compared to garmin)
- Recurring non-device revenue and big customers like insurance
Thesis: Starting with the big picture on a weekly time frame, we see this is a previous momentum stock that has clearly based. Most attractive is it clearly broke out on huge volume before retesting. Are we seeing disbelief?
This is a long term fundamental play. Next we will look at it from a closer perspective for entry and exit and confirmation strategies.
Exit Point / Timeframe: Long term fundamental growth play
Disclaimer: I am not a financial adviser and this is not financial advice. Trade at your own risk.
Note
Here is another look from a monthly perspectiveNote
Here is a closer look - 4 hour chart
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.