GoPro Reported 'Very Good' Numbers; Should Investors Take Profits?

reported strong results in the second quarter, announcing an EPS of $0.35 vs. $0.26. Sales came in at $420.0 million vs. the Street's estimate of $395.17 million. Global Equities Research analyst Trip Chowdhry said that while the numbers were "very good," he believes there "needs to be some consistency in the numbers of GoPro." "If an investor trades on the quarterly numbers, then GoPro should [have gone] higher," said Chowdhry. "If you look at the strategic positioning of GoPro, people will have questions -- like, 'What is the next thing?' It's only a camera company. What value would you give to it [as a] media company?" Chowdhry said that investors need to adjust their thinking based on the way GoPro "develops itself into a sustainable company." "If it's a camera only, it cannot sustain the multiples," he said. "[And] it is too rich for a media company." GoPro initially fell more than 6% in after hours trading after the company reported earnings. The stock gave back some of those losses but is down more than 1% today. The stock was down more than 2% earlier this morning. "[When] there's strength in the numbers, it wouldn't be a bad idea to take some profits on GoPro," said Chowdhry. He added that investors might want to stay on the sidelines if they have not yet taken a position in GoPro. As for the drones and GoPro's future, Chowdhry remarked, "It is too early to start building a drone into their model because we just don't know how much customers will go and buy those."

, CIO of Quantum Trading Strategies and author of The TechStrat Report, was impressed by GoPro's results. "They almost hit my EPS guess to the penny," Udall told Benzinga. "That $420 [million in sales] sounds really good. I thought they were gonna come in at $405, $406. $420 is a very strong number. I'm glad I'm in some of the stock." Disclosure: