Fitbit Inc (NYSE:FIT) shares followed the gains of Wednesday and jumped another 4.8% in yesterday’s trading session. The stock posted gains of 14% after big box retailer firm Target Corporation (NYSE:TGT) said that it would offer Fitbit’s wearable activity tracker to its 335,000 employees in the U.S. This news marked one of company’s largest corporate deals in its entire history.

The update

Fitbit has gained more than 80% from its IPO price of $20. However, as per one trader, FIT stock is close to stop dead on its roadway. David Seaburg, who featured on Trading Nation called FIT as a stock that is trading at 36.5 multiple and is overvalued.

The stock jumped over 180% from its June IPO to August high, and has then declined over 35%. There is no way for Fitbit to trade or survive at the current premium multiple in longer-term. For Seaburg, the up move in Fitbit stock can be is compared to movement of GoPro Inc (NASDAQ:GPRO) stock after its IPO in June 2014.

The momentum

Seaburg added that GoPro went public and flied high in the air. It witnessed a strong attraction for its product which eventually faded off. GoPro share price gained over 200% to under $100 after its June 2014 IPO, eventually declining to its today’s price of nearly $36. Fitbit stock needs to start trading similar to a hardware company.

Seaburg is of view that FIT price could stay afloat in the coming two quarters, as Fitbit has been conservative on its earnings guidance. He expect the third and fourth quarter being “ok” for the company. He projects the growth for this company to stall at some time. Contrary to his call, the analysts’ at Wall Street are positive of the stock. As per a survey by FactSet, the average price target of Fitbit Inc (NYSE:FIT) is $51.71 per share with an “overweight” rating.