Why GoPro Shares Are Down
Negative momentum is continuing to grip GoPro (NYSE: GPRO) shares, aided by a negative Barron’s article.
$41.50 had been acting as a strong support level for GoPro shares. After falling below $41.50 last Friday, shares continued sharply lower, eventually giving up nearly 10 percent on the session as volume and momentum kicked in.
Alex Eule of Barron's outlined concerns for the $8.5 billion company. In short, Eule stated that, “It's worth noting that the rest of that market has been decimated by smartphones in recent years.”
The article further comments that GoPro’s 83 PE multiple will be hard to justify as mounts are produced for smartphones.
GoPro shares opened for trade at $28.65 and never saw a lower print. Since rallying to $49.90, the stock has dropped five of the last eight trading days for a 25 percent pullback.
The issue was last trading Monday $37.17, down an additional 4.3 percent.
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