GoPro Inc (NASDAQ:GPRO) is one of the big losers on Wall Street today after three days of unbelievable gains. The company debuted on the NASDAQ last Thursday. Its initial public offering price was $24 per share. In the offering, GoPro raised $427 million.
GoPro soars 103%
Wall Street has been in love with technology IPOs for quite some time, sending new tech stocks soaring to seemingly impossible heights within days of their IPO. However, what comes up must come down, and it seems like GoPro has followed in Twitter Inc (NYSE:TWTR)’s footsteps, albeit much faster. On Tuesday, GoPro added another 20% to its stock price, climbing to a massive increase of 103% since its debut.
Of course investors and analysts are split on where the video camera maker will go next. USA Today reports that Dougherty & Co. analyst Charlie Anderson thinks the stock has plenty of room to increase still. He set a Buy rating, although his price target at last check was only $28 per share. Anderson compared and contrasted GoPro to Garmin Ltd. (NASDAQ:GRMN), which soared to $123 a share in 2007 and hit rock bottom at less than $15 a share in 2008.
The analyst noted that smartphones did great damage to Garmin, although he doesn’t see a problem with GoPro because he doesn’t think its technology will be unseated. The company’s video cameras are used by athletes and anyone who wants to capture a first person view of whatever they’re doing. Anderson says that as of now, smartphones don’t endanger GoPro. However, others have warned that products like Google Inc (NASDAQ:GOOGL) (NASDAQ:GOOG)’s Glass could pose a threat.
O’Leary: GoPro’s a potential short
Not everyone is thrilled with GoPro stock right now. Kevin O’Leary, who frequently appears on Shark Tank, said on CNBC on Tuesday that the company’s stock is now a potential short position. He said it appears that he was wrong on the company’s IPO but that it doesn’t mean he’s “wrong on the short thesis.” He sees a greater opportunity in going short rather than long, particularly at this point in time on GoPro. “Eventually,” he said he wants to go short on the company. He sees a possible upside of 50% on a short sale.