GoPro Inc (NASDAQ: GPRO)
GoPro is having an incredibly strong start to the trading session this morning. When the market opened, the stock was already trading in the green. From there, we’ve seen a continuation of gains, pushing the stock further and further upward in value. So, what’s causing the movement? We believe we’ve dug up the cause. Below, we’ll talk about what we’re seeing, why, and what we’ll be watching for with regard to GPRO ahead.
What We’re Seeing From GPRO
As mentioned above, GoPro is having an incredibly strong day in the market so far today. When the opening bell rang, the stock was already trading well into the green. From there, the stock continued on upward movement, pushing higher and higher through nearly the first hour. At the moment (10:10), GPRO is trading at $10.22 per share after a gain of $0.82 per share (8.71%) thus far today.
Why The Stock Is Gaining
As soon as our partners at Tradespoon sent us the alert that GPRO was making a run for the top, the CNA Finance team started digging to see what was causing the movement. The story pretty much jumped out at us. Pacific Crest Analyst Brad Erickson weighed in on the stock, stating that drone shipments are expected to come in at 150,000, driving revenue of $88 million in 2017. Here’s a key snippet from the report:
“In light of better-than-feared sell-through, we are raising our unit estimates by a bit more than 10% to 2.1 million units in Q4 from 1.9 million and are raising our ASP estimate slightly as our store checks showed an impressive ability to pivot point-of-purchase displays to selling the Karma Grip ($300 electronic stabilizer) when it became clear the Karma would not be launched. Further, we are removing Karma from our Q4 estimates and now expect volume shipments to begin in 2Q17. For 2017, we expect 150,000 drone shipments to contribute $88 million in revenue.”
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on GPRO. In particular, we’re interested in following sales reports. At the end of the day however, even the Pacific Crest report wasn’t great. In fact, Erickson made it clear that a fair price for the stock was between $9 and $10 – numbers the stock is trading well above at the moment. Nonetheless, we’ll be watching the news closely and bringing it to you as it breaks!
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[Image Courtesy of Wikimedia]