GoPro Inc (NASDAQ: GPRO)
GoPro was having what seemed to be a rough start to the trading session today. At the opening bell, the stock found itself in the red. From there, it continued falling deeper and deeper into the abyss. Nonetheless, minutes ago, the stock started soaring after a rumor began circulating in the social media space. Below, we'll talk about what we're seeing form the stock, why, and what we'll be watching for with regard to GPRO ahead.
What We're Seeing From GPRO
As mentioned above, GoPro wasn't having the best of days in the market today. In fact, when the market opened, the stock was slightly in the red. After the open, we saw a continuation of declines, bringing it further and further down. Nonetheless, news broke minutes ago that caused the stock to spike upward. At the moment (10:08), GPRO is trading at $9.20 per share after a gain of $0.30 per share (3.37%) thus far today.
Why The Stock Is Climbing
As always, as soon as we got the alert from Trade Ideas informing us that GPRO was making a run for the top, the CNA Finance team started to work to see what was causing the movement. In our search, we were unable to find any fundamental news released by the company that would lead to such gains. However, we did find something interesting in the social space.
At the moment, we're seeing a big rumor associated with GoPro all over social media. That rumor is that the company is about to be acquired. However, this rumor isn't like most of the others we see. This one has details. In particular, the rumor suggests that KKR will be the buyer and that the price per share on the acquisition will be $14. Nonetheless, keep in mind that this rumor is unconfirmed.
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 seeing if there is any validity to the acquisition rumor. While most of these rumors prove to be false, they also usually tend to lack details. This rumor seems to be a bit different. Nonetheless, we'll watch the news closely and bring it to you as it breaks!
Update: Since we first released this post, GPRO has lost quite a bit of steam. Unfortunately, the rumors in the social space are starting to die out and there still has been no confirmation that this is actually going to take place. The CNA Finance team will continue to follow the story closely and provide updates as they become available.
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[Image Courtesy of Wikimedia]