Ask Matt: Can Fitbit stay in the game?

Q: Can Fitbit stay in the game?

A: Fitbit (FIT) was selling fitness trackers before they were cool. Now the company is trying to show it can keep its cool - as other corporate behemoths want a piece of the digital wearables market.

The San Francisco-based company, which continues to have the leading market share of fitness trackers despite efforts by Apple (AAPL) and others to enter the business, reassured investors Thursday its newest products are selling well. Shares of Fitbit jumped $1.75, or 13.1%, to $15.15 a share after the company said its latest models, Blaze and Alta, sold more than a million units each in March. Investors saw the “strong consumer response,” as a sign the company can evolve from low-end fitness trackers to more fully capable smartwatches and wearables, Mizuho stock research analysts Betty Chen said in a note to clients. Investors should expect more new product announcements in 2016. The company needs to prove its brand holds appeal as wearables take on more capabilities than just counting steps. Shares of the stock are still down about 50% over the past 12 months as investors fear growth will slow amid tougher competition. Analysts, though, think the stock could be worth $23 a share in 18 months and that revenue will grow by 31% this year.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.