Fitbit shares picked up the pace Wednesday, rallying 14 percent after big box retailer Target said it would offer the company's wearable activity tracker to 335,000 U.S. employees. The announcement marked one of Fitbit's largest corporate deals in its history.
Fitbit is now up more than 80 percent from its June 2015 IPO price of $20, but according to one trader the stock is about to stop dead in its tracks.
"This is a stock that, trading at a multiple of 36.5, is overvalued. Even after the pullback in the last month," David Seaburg said Wednesday on CNBC's "Trading Nation." The stock rallied more than 180 percent from its June IPO to early August high, and has since fallen more than 35 percent. "There's no way over the long run that this company is going to survive or trade at the premium multiple that it's trading at currently," he added.