Why Fitbit Stock Is Soaring Today

Shares of fitness wearables company Fitbit (NYSE: FIT) surged on Thursday following the announcement of a partnership with medical-device maker DexCom (NASDAQ: DXCM) related to glucose monitoring. The two companies will develop a continuous glucose monitoring experience that will put DexCom data on Fitbit's upcoming Ionic smartwatch. Fitbit stock was up about 10% at 11:45 a.m. EDT, while shares of DexCom were down 1.7%.

With Fitbit suffering from a steep drop-off in demand for its fitness trackers, the Ionic smartwatch needs to be a success for the company to turn itself around. Ionic is set to begin shipping in October for $300, slightly less expensive than the base Series 2 Apple Watch, but slightly more expensive than the first-generation Series 1.

Image source: Fitbit.

Source: Fool.com