GoPro Inc. (Nasdaq: GPRO) stock jumped as much as 8% in afterhours trading today (Thursday) after the company reported earnings per share (EPS) of $0.12 for the third quarter. Analysts had been expecting EPS of $0.08.
As expected, GoPro's camera sales were strong and contributed to the earning's beat.
But as we've been saying at Money Morning since the GoPro IPO, the story with this company is not its camera sales.
There is another key figure that tells us more about this stock...
GoPro Inc. (Nasdaq: GPRO) stock jumped as much as 8% in afterhours trading today (Thursday) after the company reported earnings per share (EPS) of $0.12 for the third quarter. Analysts had been expecting EPS of $0.08.
As expected, GoPro's camera sales were strong and contributed to the earning's beat.
But as we've been saying at Money Morning since the GoPro IPO, the story with this company is not its camera sales.
There is another key figure that tells us more about this stock...
GoPro Inc. (Nasdaq: GPRO) stock is under the microscope today (Thursday) as the company reports earnings after the bell.
Analysts are expecting earnings per share (EPS) of $0.08, on revenue of $263.5 million. Those numbers will move the stock tonight and tomorrow, but there's a much more important long-term factor to watch.
In fact, this part of the company's future plans will dictate GPRO stock's long term success...
The GoPro stock price was down as much as 13.8% from yesterday's close this morning (Thursday), after news that the company's founders were granted permission to break the lock-up restriction on their shares.
Following an initial public offering, company insiders are contractually forbidden to sell shares for a certain period of time, known as a "lock-up period." The lock-up usually lasts between 90 and 180 days.
Following its red-hot IPO in June, the GoPro stock price has dropped more than 20% in the month of August alone.
GoPro Inc. (Nasdaq: GPRO) priced its shares at $24 on June 24, and banked a first day gain of 30.6% the following day. GPRO stock soared 108% from its offer price in its fourth day of trading to a high of $49.90.
But according to Money Morning experts, that surge was unjustified.
In fact, a 20% drop may be just the start of problems for the GoPro stock price…
