GoPro founder Nick Woodman
While most small cap stocks continue to get pummeled, GoPro GPRO continues to shine.
The action camera marketer soared 11% to an all-time $90.94 closing high Monday on word that it would expand its low and high end lines.
GoPro will roll out three cameras, the entry level, $130 GoPro Hero, the $400 Hero4 Silver and $500 Hero4 Black. Both Hero4 cameras feature touch-screen displays that allow users to see what they’re shooting and provide enhanced low-light and night images.
The rollouts had already prompted FBN Securities and Piper Jaffray to raise their GoPro price target to $90 from $70 and $60, respectively.
Since debuting at $24 on June 26, GoPro has rocketed nearly 280%. Second-quarter revenue surged 38% and the company says it expects a 35% jump in the third quarter. That’s the kind of movement that may merit its own action video.
Still, prospective investors should be cautious of story stocks. While GoPro’s fiscal year sales surged 87% to $1 billion this year, with Monday’s gains and the earlier post-IPO runup, the company has a market capitalization of nearly $11.5 billion and a price/earnings ratio that’s close to an astronomical 500.
No bargain-priced stock, by any means.
Follow story stocks on Twitter @gstrauss_
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