Fitbit Taps into Google Cloud

Data Investing
Data Investing

Patients and clinicians will now be able to get comprehensive patient profile views, which could lead to more personalized care.

Fitbit (NYSE:FIT) and Google (NASDAQ:GOOG) announced on Monday (April 30) that they will work together to innovate and transform the future of digital health and wearables.

The companies said in a release that the collaboration will lead to positive health outcomes for people around the world.

Fitbit intends to use Google’s new Cloud Healthcare API, which was launched in the month of March, in order to integrate further into the healthcare system by connecting user data with electronic medical records.

Fitbit, a leading global wearables brand, said clinicians and patients will be able to get comprehensive patient profile views, which could lead to more personalized care.

“Over the past decade, we have built an incredible foundation as the leading wearables brand, helping millions of people around the world make lasting behavior changes that improve their health and wellness through fun and engaging experiences,” said James Park, co-founder and CEO of Fitbit.

He added, “[w]orking with Google gives us an opportunity to transform how we scale our business, allowing us to reach more people around the world faster, while also enhancing the experience we offer to our users and the healthcare system.”

Fitbit will move to the Google Cloud Platform to innovate and advance its products and services. The companies said the platform will provide Fitbit with next-generation cloud services and engineering support that will allow Fitbit to scale faster. Google’s AI, machine-learning capabilities and new predictive analytic algorithms will enable also help Fitbit bring more meaningful data and insights to consumers.

“At Google, our vision is to transform the way health information is organized and made useful,” said Gregory Moore, MD, vice president of healthcare at Google Cloud. “By enabling Fitbit to connect and manage key health and fitness data using our Google Cloud Healthcare API, we are getting one step closer to this goal.”

Following Monday’s announcement, Fitbit closed at $5.55 on Monday (April 30), up 4.72 percent over the one-day period. The stock was trading at $5.41 as of 1:26 p.m. PST on Tuesday (May 1), down 2.61 percent. Meanwhile, Alphabet was trading at $1,021.43 at that time on Tuesday, up 0.4 percent.

Craig-Hallum analyst Alex Fuhrman was positive about the announcement, and said that Fitbit now holds an edge over Apple Watch due to Fitbit’s battery life. Fuhrman has given the stock a “buy” rating with a target price of $10.

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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.

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