This Fitness Tech Stock Has Crushed Apple's 2025 Gains -- 1 Reason Why
Key Points
Zepp Health transitioned away from partner Xiaomi to focus on its Amazfit brand of wearable technology.
It just reported its first overall revenue growth since 2021.
- 10 stocks we like better than Zepp Health ›
After several years of losses, Zepp Health Corporation (NYSE: ZEPP) took off in 2025. The manufacturer of smart wearable technology is up over 1,900% on the year, as of Oct. 16, and most of that growth came during the last three months. That's much better than Apple, the leader in wearable devices, which has lost about 1%.
What turned around Zepp Health's performance? One strategic shift has made all the difference.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
Building its own Amazfit brand is driving growth
Zepp Health began as Huami, a spinoff from Chinese electronics giant Xiaomi. Huami sold Xiaomi-branded wearables through a licensing agreement, making it highly reliant on that company.
In 2021, Huami rebranded to Zepp Health and started transitioning away from the Xiaomi brand. It focused on developing its existing Amazfit line of smartwatches and fitness trackers. This was a risky move, and until recently, Zepp Health's share price and revenue were consistently trending downward.
Now, however, it's looking like a smart decision. Zepp Health reported revenue of $59 million in the second quarter of 2025, a 46% year-over-year increase and its first overall revenue growth since 2021. Crucially, it also reported that the growth came entirely from Amazfit products.
In addition, Amazfit has been building a roster of elite athletes to serve as brand ambassadors. One of the latest big names is Baltimore Ravens running back Derrick Henry, who joined Amazfit in July.
Zepp Health is still a risky company and not profitable yet. If you're just looking for a steady performer, Apple, despite lackluster recent returns, is the better way to go. But if you're looking for smaller tech companies, particularly wearables manufacturers, Zepp Health is one to watch and potentially add to your portfolio.
Should you invest $1,000 in Zepp Health right now?
Before you buy stock in Zepp Health, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Zepp Health wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $646,805!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,123,113!*
Now, it’s worth noting Stock Advisor’s total average return is 1,055% — a market-crushing outperformance compared to 189% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of October 13, 2025
Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Xiaomi. The Motley Fool has a disclosure policy.
Recommended Articles
