Negative momentum is continuing to grip GoPro GPRO shares, aided by a negative Barron’s article.
Momentum
$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.
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Barron’s
Alex Eule of Barrons outlined concerns for the 8.5 billion dollar company. In short, Eule states 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.
Price Action
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 at $37.29, down an additional four percent Monday.
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