Why GoPro Inc Stock Popped Today

What:

• Shares of GoPro were looking flashy once again today, rising as much as 13%, thanks to bullish coverage initiated by JMP Securities .

Source: company website

So what:

• JMP slapped s $60 price target on the wearable-camera maker, saying that it is just beginning to take advantage of the many opportunities in an industry it estimates to be worth $70 billion.

Source: Wikipedia

So what:• In addition to revenue from camera sales,

GoPro brings in income from advertising on its YouTube channel, and has just begun expanding its advertising capabilities through other platforms.

Source: Wikimedia Commons

So what:• Alex Gauna, the JMP analyst, said its “first

mover and financial advantages” will allow it to capitalize on “opportunities to monetize its technology and brand.”

Source: Wikipedia

Now what: • GoPro shares

have been on a wild ride since its IPO a few weeks ago, surging from its $24 initial price to close to $50, before falling back below $40.

Source: Wikimedia Commons

Now what:• Still, the run-up seems deserved as the high-

performance camera is the clear leader in its industry with over 90% market share, and is often used for extreme sports like surfing or skydiving.

Source: Flickr

• Unlike many tech IPO’s, the company is also profitable with $60 million in net income in 2013. First-quarter net income slowed this year, however, worrying investors.

Source: Flickr

Now what:• With nearly 4 million cameras sold last year,

the question for GoPro is can it go beyond being a niche product and bring in both new customers and enough ad revenue to justify its valuation.

Source: Company website

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