GoPro Opens Big - What Does That Mean For The Market?

GoPro GPRO made its public debut Wednesday as shares charged higher.

Shares of the wearable camera company priced at $24 (the top of the range) and opened at $28.65, the lowest print of the day. After a bull rally took shares to $33, 37.5 percent above its pricing and 15.2 percent above the open, traders took part in a bit of profit taking.

The interest that IPOs have been generating are leading to increased speculation that there is weakness in the broader macroeconomic market. As investors chase after IPOs (as indicated by strong opens), it appears they are looking to stretch out the last bit of alpha available in equity markets.

Related: Will GoPro's Pricing Leave Investors Smiling

In addition, the quantity of initial offerings indicates that equity markets may be overextended (15 IPOs expected in this week alone). When a company goes public, the firm obviously wants the highest valuation possible for the firm (insiders holding stock and authorized shares). With a massive rush to go public in 2014, investment bankers and CFOs may think a pullback in the near future is likely.

Shares of GoPro have been trading at a very tight spread for the past hour on strong volume, although it has pulled back significantly from morning trading. Sub Penny trades indicate that much of the trading is being driven by computer algorithms.

The company was last trading hands at $31.18 per share, 29.92 percent above the open.