why did gopro stock go up

Is GoPro stock a bargain right now?

For investors that believe 2021 was just the start of GoPro's return to profitability, shares could indeed be a bargain right now. But it remains to be seen if the company can continue to grow and generate cash with its existing product suite. If it can, there may not be many more months with double-digit drops like January 2022.

What is going on with GoPro's revenue growth?

GoPro has been focusing on growing its subscription base and a direct-to-consumer strategy. Subscribers grew to 761,000 at the end of 2020, 52% ahead of the previous quarter, and 145% higher than one year ago. The company said GoPro.com generated $116 million in revenue in the fourth quarter, almost double the amount of a year ago.

How did GoPro make money in the fourth quarter?

The company said GoPro.com generated $116 million in revenue in the fourth quarter, almost double the amount of a year ago. Customers have been spending on more of the company's high-end offerings; cameras with retail prices above $300 represented 91% of quarterly sales.

What is GoPro’s business model?

GoPro has been working to transition its strategy to become more of a direct-to-consumer subscription business for its users and fans. It has also aimed to expand share of its higher price point offerings. For the full year 2021, 97% of its camera revenue came from cameras with retail prices at or above $300.

Is GoPro stock expected to go up?

Stock Price Forecast The 6 analysts offering 12-month price forecasts for GoPro Inc have a median target of 11.50, with a high estimate of 12.00 and a low estimate of 8.00. The median estimate represents a +64.52% increase from the last price of 6.99.

Why invest in GoPro stock?

As for GoPro's online sales, it hopes that e-commerce will make up more than half of its purchases by 2021. In addition, GoPros that sell for more than $300 accounted for nearly 90% of its first-quarter revenue for 2020, which shows there is a strong market for high-end cameras.

Is GoPro a good stock to buy now?

GoPro, Inc. may be undervalued. Its Value Score of A indicates it would be a good pick for value investors. The financial health and growth prospects of GPRO, demonstrate its potential to outperform the market. It currently has a Growth Score of C.

Is GoPro a good stock to buy 2021?

GoPro is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $13.48, but it is currently trading at US$9.14 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future.

Is GPRO a good investment?

GPRO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.68, while its industry has an average P/E of 14.56. Over the last 12 months, GPRO's Forward P/E has been as high as 20.06 and as low as 7.60, with a median of 11.48.

Is GoPro stock a good 2022?

Is GOPRO Stock a good buy in 2022, according to Wall Street analysts? The consensus among 5 Wall Street analysts covering (NASDAQ: GPRO) stock is to Buy GPRO stock.

Is GoPro stock undervalued?

PB vs Industry: GPRO is overvalued based on its Price-To-Book Ratio (1.7x) compared to the US Consumer Durables industry average (1.2x).

Who is GoPro owned by?

The top individual shareholders of GoPro are Nicholas Woodman, Brian McGee, Kenneth Goldman, Peter Gotcher, and Alexander Lurie. Prentice Capital Management, The Vanguard Group, and BlackRock are GoPro's largest institutional investors.

Does GoPro stock pay dividends?

GOPRO (NASDAQ: GPRO) does not pay a dividend.

Why did GoPro drop?

Shares of GoPro (GPRO -2.46%) tumbled Friday after the company reported its first-quarter results. Though it beat analysts' consensus estimate for earnings and reported sales that were mostly in line with Wall Street's expectations, investors weren't thrilled with the company's second-quarter guidance.

What happened

So what

Shares of action camera maker GoPro ( GPRO 0.83% ) have been moving up this week, having gained more than 13% since Monday. The bulk of those gains is coming today, as shares were up 10.3% at 12:15 p.m. EST.

Now what

The stock has been on the list of Robinhood favorites for some time, but the recent move could be related to the resurgence of Reddit's WallStreetBets. GoPro has more than 10.5% of its float held short as of Feb. 26, 2021, according to MarketWatch.

Premium Investing Services

GoPro has been working to turn around its business by embracing more of a subscription strategy. Subscribers grew to 761,000 at the end of 2020, 52% ahead of the previous quarter and 145% higher than one year ago. The company said GoPro.com generated $116 million in revenue in the fourth quarter, almost double the amount of a year ago.

What happened

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.

So what

After spiking early Friday on the back of its first-quarter 2021 earnings, shares of GoPro ( GPRO 2.42% ) gave back most of their gains on the day. Double-digit gains pared down to a 3.4% increase on Friday. Today, investors continued to sell the action-camera maker's shares. As of 12:30 p.m. EDT on Monday, GoPro shares were down almost 10%.

Now what

The sharp short-term reversal makes more sense when looked at in a broader context. Shares of GoPro soared more than 50% in the month of March. The outsize move wasn't due to developments at the company, but likely rather because it was a favorite with the retail trading crowd associated with Reddit's WallStreetBets forum.

NASDAQ: GPRO

GoPro has been working to turn its business around and focus on growing its subscription service. In its first-quarter report, the company said its revenue grew 71% year over year, and that its subscription service grew revenue 224% to represent 40% of total sales. GoPro also told investors it surpassed 1 million subscribers in April.

Premium Investing Services

But the company still reported a net loss of $10 million for the first quarter. Since GoPro hasn't reported a profitable year since 2015, investors are likely going to remain in wait-and-see mode for the most part until the business truly turns the corner. That's especially the case with the stock seeing the gains it already has this year.

What happened

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.

So what

Shares of action-camera maker GoPro ( GPRO -0.23% ) sank more than 20% at their lows on Friday, and remained down 18.6% as of 3:30 p.m. EST.

Now what

Though the company highlighted the 28% sequential improvement in revenue versus the third quarter, the seasonally stronger fourth quarter fell short when compared to the 2019 period. For the full year, 2020 revenue dropped by 25% versus 2019.

Premium Investing Services

Though GoPro reported positive earnings for the holiday quarter, it continued its string of annual net losses that started in 2015. Even after earning $44.4 million in the final quarter of 2020, the company lost $66.8 million for the year.

Consumers have to stay home, taking away the primary use case for action cameras

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.

What happened

I've been a contributor with the Motley Fool since 2019 and it's been a supreme joy to try to help make the world a little smarter, happier, and richer every day. What's great about exploring business and the economy is the insight it gives you into how things are in the world.

So what

Shares of camera company GoPro ( NASDAQ:GPRO) crashed 31% in March, according to data provided by S&P Global Market Intelligence . While the impact from COVID-19 on GoPro's business isn't immediately apparent, there is a case to be made.

Now what

An analyst from Oppenheimer suggested GoPro's sales have dropped because of the coronavirus. However, GoPro itself has yet to release any business update regarding COVID-19. Therefore, the suggestion that camera sales are falling is just a guess. But it is reasonable speculation.