Fitbit stock soared to near 10 percent on Monday after the company announced a health-care collaboration with Alphabet’s Google.
The stock later gave up about half the gain.
The wearables company announced on Monday which which plans to use Google’s Cloud Healthcare API to help the company integrate further into the health-care system. The technology allows doctors in addition to various other health workers to see a more complete profile of patients by connecting Fitbit data with electronic medical records.
Fitbit’s partnership with Google is usually the next step in a journey to integrating health care in addition to wearables. Fitbit recently acquired Twine Health, which offers services like health coaching from the workplace to help manage chronic conditions like diabetes in addition to hypertension.
Fitbit says which using Google’s Cloud Platform will also allow which to scale faster while also remaining secure in addition to protecting privacy.
“Google gives us an opportunity to transform how we scale our business, allowing us to reach more people around the globe faster, while also enhancing the experience we offer to our users in addition to the healthcare system,” Fitbit co-founder in addition to CEO James Park said in a statement.
The completely new focus on health may make Fitbit a stronger competitor from the wearables market. The completely new health venture comes after competitor Apple announced a tighter focus on health with its smartwatch. The Apple Watch’s sales have steadily grown the past four quarters, in addition to which just had its best quarter ever.
Fitbit has had a tough year. The company’s earnings Discharge in February revealed which which is usually losing money in addition to expects revenue to decline further from the upcoming year. which expects which “consumer demand shifting towards smartwatches” (like the Apple Watch) will hurt sales even further.
The stock was down 2.7 percent for the year at market close on Monday.