12th January was the day when GoPro Inc. (NASDAQ:GPRO) shares experienced a share price at a level that analysts have assessed is the lowest the company has faced in four months, dropping a further 6.7% in share value before the market closed. However, where this highlights a gloomy position of the company as far as its business is concerned, analysts have begun to assess whether this might be the best time for investors to invest in the company for the long run.
After shares of GoPro Inc. (NASDAQ:GPRO) closed on Monday at a four month lowest point, the cumulative drop in total value of the company’s share can be assessed to have been over 44% from the value of $98.47 that the company had experienced in the early part of October. NASDAQ, the stock market that GoPro Inc. (NASDAQ:GPRO) shares are listed at, has released data regarding the activity shares of the company experience at the stock exchange.
According to the given data, most investment that GoPro Inc. (NASDAQ:GPRO) shares experience is of a short term nature. Actually, by the end of 2014, traders trading GoPro Inc. (NASDAQ:GPRO) shares had sold, in a short manner, over 14.8 million shares of the company. That makes up over 66% of the total free float of GoPro Inc. (NASDAQ:GPRO) number of shares in the market. Only a few other company listed on the NASDAQ stock exchange have such an honor of being shorted to such a great extent.
However, does short selling literally translate to cheaper stock? If the majority of shares of a company are free-floating after being shorted at the stock exchange by traders, is that point the cheapest point the shares will drop? Analysts feel like the answer to these questions is still a no, as in the first two weeks of January, the share price of GoPro Inc. (NASDAQ:GPRO) shares has fallen even further, reaching its lowest point just this Monday.
According to analysts, share prices will fall further, and due to the already excessively shorted volume of shares, GoPro Inc. (NASDAQ:GPRO) shares may not be the best investment opportunity traders currently have at the NASDAQ stock exchange. But, certain reassurances are still there that make it difficult to rule out the investment opportunity GoPro Inc. (NASDAQ:GPRO) shares currently present. GoPro Inc. (NASDAQ:GPRO) CFO Jack Lazar is of the opinion the company share prices will improve dramatically over the coming months.
He has declared a change in company policies as a catalyst driving towards that ultimate goal. According to Lazar, a reinforcement cycle has been established with customers to encourage more sales of GoPro cameras. A major development that had gone unnoticed is GoPro Inc. (NASDAQ:GPRO)’s expansion to the Asian market, namely China. China houses the biggest population in the world, and one which is receptive to technology. It is a market that technology giants must tap in order to expand business, and GoPro Inc. (NASDAQ:GPRO) is going in with the same intention.
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