GoPro, the American company responsible for the “world’s most versatile camera” recently released its IPO on the NASDAQ as GPRO.
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History of GoPro
The idea for GoPro came to CEO Woodman after a surfing trip in Australia in 2002. Woodman wanted a high-definition and lightweight camera system that could capture the closeup and professional angles of his various adventures. Thus after raising money for his new idea, Woodman officially started selling the GoPro cameras, originally with 35 mm film, in 2004.
GoPro sold over 3.8 million cameras in 2013 (up 66% from the year prior), raising its cumulative sales of high definition cameras to 8.5 million since it introduced such models in 2009. GoPro’s camcorders are sold in over 100 countries, and according to the NPD Group, it was the top selling camcorder in the US last year. In fact, GoPro HERO cameras apparently represent a 45% share in dollars of the entire US camcorder industry — one that has been rapidly subsumed into mobile phones like Apple’s iPhone.
Day 1: Largest Consumer Electronics IPOs Ever!
On Thursday, June 27th, the day of its release on the market, GoPro had sold 17.8 million shares at $24 each, at the high end of its $21 to $24 price range. This amounts to one of the largest consumer electronics IPOs ever! GoPro shares surged 38% and hit a peak valuation of $3.2 billion dollars causing GoPro founder and CEO Nick Woodman’s 45% stake to turn into $1.44 billion.
Day 2: GoPro Shares Continue to Rise Up the Market Ladder
With its market success on Thursday, GoPro continued its rapid climb up the ladder with even higher prices Friday morning. The stock price briefly surged above $40 before falling back to around $37.50 at just past noon EDT — still up 20% on the day and over 50% from the IPO price. According to Forbes, “the buoyant price is reflective of the red hot IPO market in 2014 and recent deals in the consumer electronic space.”
Day 3: GoPro Shares Are Surging Like Crazy
After gaining more than 30% in their debut on Thursday, and another 14% on Friday, shares of the GoPro company were up as much as 10% in the morning trade this morning. Now at $39 per share, GoPro is worth more than $4.7 billion! Shares of the “most versatile camera” maker jumped another 3.8% in pre-market trading as it prepared for its third day of trading on the NASDAQ. At its pre-market price of $37.10, GoPro stock has skyrocketed 55% since the company’s initial public offering made its debut on Thursday.
Though its huge success so far, do you think the GoPro share will continue to rise in the market or eventually even out and drop? Let me know what you think in the comments below. Is GoPro worth the investment? Why or why not? Also, be sure to check out other interesting topics here.