After GoPro Inc (NASDAQ:GPRO) released information Monday that they would be launching two new action cameras this year, the company’s stock shot high, rising 3% on Tuesday. The stocks options trading size was also expected to hit a record high.
The company produces powerful cameras worn by skydivers and surfers, capturing high quality and stable videos. The performance of GoPro Hero 3+ in the market beat the expectations of many analysts, with the release of HERO 4 set to underpin the success of the company this year.
The stock touched a high of $96.45 before settling at $92.34. The price represents 283% rise since the stock’s initial public offering price of $24. In the options, calls were way more than the puts, having a ratio of 2.1:1. Trade Alert, an analytics company said that GoPro Inc (NASDAQ:GPRO) options could hit record high to post around 476,000 contracts.
The stock has risen drastically because of the confidence investors have in it and the company’s promising future.
GoPro Inc (NASDAQ:GPRO) said that the new cameras will be availed in the stores from October 5, a date earlier than initially expected. HERO 4 Black, the high-end model will start at $499 while the HERO 4 Silver model will be priced at $399. The company’s beginner level camera, which is meant to introduce new users to the GoPro family cameras is called HERO and will be priced at an affordable $129.
The company is releasing the three cameras ahead of the holiday season which is characterized by many activities and high volume shopping. The fourth quarter will determine the success of the camera and will be the period to either stabilize or weaken the stock.
GoPro Inc (NASDAQ:GPRO) isn’t leaving anything to chance as the company has set a massive distribution network and marketing to reach the masses.
This article has been written by Victor Ochieng.