GoPro Inc (GPRO) Shares Continue Surge On Amazon News
GoPro Inc (NASDAQ:GPRO) shares have been on a wild ride rising 28.44% this week alone. The company which offers mountable and wearable cameras and accessories, finished off the week with shares rising 4.25%. The rise has been attributed mostly to a short squeeze and in part to an announcement today from Amazon.com that GoPro Inc.’s Headstrap Mount + Quick Clip,GoPro HERO4 SILVER, and Accessories Kit for GoPro Hero4 were the best-selling cameras on Amazon.com this holiday season.
Investors had pointed to a short squeeze for most of the rise because short interest in the specialty camera maker is very high. According to the NASDAQ as of December 15th, short interest is over 12.7 million shares or 41% of the company’s equity float with just under 2 days to cover. GoPro Inc shares originally were IPO’d at $24 on June 26 and opened at $28.65. Shares remain below the $75 level the company priced shares in a November secondary offering of over 10 million shares to investors and well off the 52 week high of $98.47 they hit on October 7th, 2014.
Despite the difficulties, shares in the company have risen nearly 121 percent since the company’s initial public offering.
This Week’s Rise A Surprise
The movement has been the opposite of what many traders and investors expected with an 180 day lockup period expiring Monday. Many feared shares could fall further due to the oversupply of shares flooding the heavily shorted company.
3rd Quarter Guidance for Holiday Period Very Strong
In its 3rd quarter, GoPro Inc raised guidance and forecasted a strong Holiday Quarter profit of 65-69 cents on $550-$580 million revenue. Analysts had previously expected 55 cents of profit on $505. million for the Holiday Season.
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