Health wearables Oura and Whoop are attempting a critical pivot from fitness fads to health necessities to justify their sky-high valuations as they eye public listings. The companies recently raised funding at $11bn and $10bn respectively, though they only capture about 6% of the broader wearable health device market that includes smartwatches and other competing products.

Last year, Oura's smart ring sales grew 57%, while Whoop's bracelet sales surged 194%. Their valuations represent roughly 10 times revenue, a premium of about two-thirds compared to industry pioneer Garmin. US Health Secretary Robert F. Kennedy's endorsement of wearables as part of the "Make America Healthy Again" movement signals growing official support for the category.

Competition from tech giants like Apple, Samsung and Huawei presents a significant challenge. Oura is currently embroiled in an IP battle with Samsung that could reshape the smart ring market. Unlike fitness fads that faded after pandemic demand subsided, these companies aim to establish themselves as health necessities with lasting value, positioning themselves differently from former high-flying fitness brands like Peloton.