GoPro Approaches $40 For The First Time Since August 2014
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
GoPro Inc (NASDAQ: GPRO) shares were trading lower by $1.38 (2 percent) at $40.60 in Monday's session. There are two potential catalysts for the decline, which has taken the issue to its lowest level since August 18, 2014, when it bottomed at $40.04 on its way to its all-time high set on October 7 at $98.47.
The primary catalyst may be the announcement that Xiaomi will be launching a competitor to GoPro's Hero camera at a much lower price of $64; GoPro cameras range from $130 to over $300. The other catalyst may be that on Friday, two form 144 filings comprising 1.5 million shares could indicate a sale of these shares within 90 days.
A few traders used the double dose of bad news to cover shorts and attempt a long off the open, as the issued bottomed shortly after its lower open at $40.19 and rallied to top $41.58. That is $0.40 shy of Friday's close $41.98.
It has not closed under $40.00 since August 15, when it ended the session at $39.79. The all-time low for the issue was made off its opening print from its IPO at $28.65.
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