It’s been a wild ride for GoPro (GPRO) investors. And it’s expected to get even wilder after GoPro earnings came in above Wall Street expectations. But this time it could be in a good way. The shares were temporarily halted but are largely expected to trade higher upon re-opening. How much? We’ll have to wait and see.
GoPro earnings came in at $0.99 per share on revenue of $634 million. That compares to expectation of around $0.80 per share on revenue of $580 million. GoPro’s Hero4 led the way to a huge 4th quarter and holiday season.
GoPro IPO’d in June as a Wall Street darling, seeing its stock run up as high as $98.47 by October. But it sold off hard in the 4th quarter, literally becoming a “dog” of sorts in investment circles. But IPO’s are known for producing volatility amidst hype and price discovery.
Although investors will have to await a return to trading and the conference call discussion to see where GoPro shares will trade, the initial numbers looked solid. But a few things to note: One is that GoPro’s forward P/E is a lofty 43.  As well, two notable technical areas to watch in the days ahead will be the 50 day moving average (around $60) and the intersection of the downtrend line from its highs and lateral resistance formed at the September/October price lows and December price highs (around $65-$70).
GoPro (GPRO) Chart pre-earnings
Update: GoPro shares reversed course in after hours and are now trading at lower prices.
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No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
