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Apple Hasn't Sent Fitbit Into the Grave Just Yet, Mostly Due to 3 Reasons

Fitbit (FIT) surprised investors on Wednesday afternoon with both a top and bottom line beat, suggesting that the fitness tracker industry isn't dead after all due to Apple's (AAPL) smartwatch.

Shares of FitBit were surging 14.6% to $5.81 in early afternoon trading on Thursday, but the stock is still down 21% for the year.

The San Francisco-based company reported an adjusted loss of 8 cents per share, which was narrower than the loss of 15 cents per share that analysts were expecting, according to Thomson Reuters. Revenue fell nearly 40% year-over-year to $353.3 million but managed to top expectations for $341.6 million. For the past quarter, FitBit sold 3.4 million devices for a total of 67 million devices sold-to-date. The company decreased costs by 7% year-over-year, mostly by cutting costs of sales and marketing.

FitBit managed to beat expectations for a few reasons. First, although some people have written off fitness trackers as a quickly fading fad, FitBit CEO James Park said that demand has been higher than...