GoPro Inc. (NASDAQ:GPRO) had been on a ride since its initial public offering. The company was no doubt one of the most expensive IPOs in the history of tech stocks. The stocks started at a price of $60 and went up to $98.47 within months. After staying there for a while, the stocks saw a decline of more than 50 percent and came down to $40.
The company pitched the idea that it was more of a media company than an electronics company. It was the idea that worked and the company oversold itself to the investors. According to a number of market analysts, the company has still got a lot of potential. The stock prices can rise if the company uses its fundamentals properly.
The management of the company and investors are not on the same page, for the company is marketing itself as a media company whereas the investors have come to realize that the company has not achieved that status yet. One thing that can be said for sure, however, is that GoPro Inc. (NASDAQ:GPRO) can become a market leader if it puts in all the right efforts. The company can become a competitor of Twitter Inc. if it pursues its diversification plans. Not only will this expansion raise the revenues of the company, but it can also make GoPro a prominent player in the media segment.
The short interests of GoPro Inc. (NASDAQ:GPRO) are on a rise, depicting an interesting story about the dilemma that the tech bulls and fundaments investors are facing. If we look at the P/E (price to earnings) ratio of the company, it does not seem to be a good fit for the investors. The short shares of the company, however, paint a different story. It will take around 4 days for the company to cover its short interests, which essentially means that the stocks can become unpredictable once they are scarce in the market. According to the estimates of a number of research companies, GoPro Inc. (NASDAQ:GPRO) can see an upward trend simply because of lack of shares in the market.
According to JMP Securities, GoPro Inc. (NASDAQ:GPRO) can see an increase of 48 percent in its stock prices in the current quarter. The company predicts a further increase of 43 percent during the upcoming quarter. JMP Securities has given the stocks of GoPro Inc. (NASDAQ:GPRO) a target price of $105 and an EPS range of $1.50 to $1.45.
Coming to the current stocks prices of GoPro Inc. (NASDAQ:GPRO), the company, during the last trading session of March 25, 2015, started its stocks at a price of $43.40 and closed at a price of $42.30, after hitting the highest price of $44.34. The company has a beta of 0.49 with an EPS (earnings per share) of $0.78. As far as the consensus target price on the stocks of GoPro is concerned, the figures are recorded to be at $62.5.