GoPro Inc (GPRO)’s Rising Triggers Dilemma Amongst Investors

Ever since its IPO in June, 2014, GoPro Inc (NASDAQ:GPRO)’s stock has been on a constant upward curve and its current position at $67 on Thursday, 30th October, 2014, was indeed a far cry from $24 per share at which it had opened. The latest hike was attributed to this quarter’s results which turned out to be higher than what had been predicted and also an improvement in revenue, both of which caused the company to issue guidance.

Nicole Sinclair of The Street summed up the sentiments in the following comment –

“I think the key was the revenue number. We were expecting 38 percent. It surpassed the whisper numbers. And the gross margin was a strong 45 percent. It’s key because GoPro is coming out with new Hero products this season. There are some lower priced items and we want to see how it impacts margins. I think it’s a stellar report.”

GoPro Inc (GPRO)

When CNBC discussed GoPro Inc (NASDAQ:GPRO)’s performance with Michael Pachter, senior digital analyst with Wedbush Securities, he presented the opinion that not only was company offering a good camera at affordable rates but was also expanding its customer base. He was alluding to the Hero Original model which is priced at $129 as also to the fact that rather than limit its sales to the sports and adventure category, the company is trying to crack ice with other segments too.

On one hand there are analysts, who feel that GoPro Inc (NASDAQ:GPRO)’s transition from action sports to traditional photography may not be as smooth and fruitful. But on the flip side majority of observers agree that it is a company which investors seem to have fallen in love with courtesy of its unlimited potential. Paul Coster from JP Morgan expressed confidence in the firm’s abilities through his following statement –

“We believe GPRO remains the dominant leader in the fast-growth action camera space, and that the firm’s software and media initiatives could significantly expand the addressable market, opening up adjacent revenue opportunities too.”

All of this has already resulted in GoPro Inc (NASDAQ:GPRO)’s CEO Nick Woodman to amass $3 billion in his account, the probability of this figure shooting upward being extremely high.

This article has been written by Vinita basu.

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