GoPro: Bulls Vs. Bears

It seems these days if one wants to start a debate on the street, one only needs to utter the name GoPro Inc GPRO. Ever since the company had its debut, the opinions regarding it have always ranged in extremes; investors either hate it or love it. The major reason for that being the spectacular run it had in the 3 months following its IPO and then a drastic correction since then.

FMHR trader Pete Najarian and Jim Lebenthal of Lebenthal Asset Management were recently seen on CNBC discussing their diverging set of views on the stock.

The Bull Case

“Well, what makes me most excited is going into this quarter, so obviously we have a big down chart. I have owned this stock since give or take call $72 a share. So, this has been very painful to the downside for me, but going forward, I think, what excites me is what comes this quarter and what comes is all of those new products and the higher costs and the margin that they are able to get from some of those products, I think its going to be a significant driver,” Najarian said.

“You talk about international expansion as well, they are talking about how they are going to be launching into China […] they will monetize content in a big way I think going forward.”

The Bear Case

“The JP Morgan report has above estimate earnings for 2016 that at the current price has it trading at 50 times 2016 earnings. If you are going to buy a stock at that level there has to be a [mote] to competition. […] I just don’t think these guys have a [mote] to competition […]”