Remember when we were telling you that GoPro would be going public sometime this summer? Well, today was that day and their IPO did pretty damn well for its first day. GoPro is listed on the NASDAQ as GPRO and originally opened at the IPO price of $24 and currently sits at $31.34 which is an increase of over $7 per share and over 30%. This is also one of the most recent hardware IPOs in recent history and clearly shows the market’s fatigue with software company IPOs and the desire to invest in tangible hardware companies.
At the opening of trading today and once the stock officially went public, the stock was up as high as $32.86 which was as high as it went today. After that, it was mostly a battle to see how high it would end by the end of the trading day. However, the stock is still trading up in AH trading which is only a few cents, but will likely mean an even bigger payout for those that got in on the IPO. In terms of volume, 45.82 million shares changed hands today which is based on the initial shares offered of 17.8 million shares, meaning those 17.8 million shares changed hands almost 3 times. Likely meaning they were bought, sold and then bought once again in most cases.
GoPro raised about $427 million on the share sale and valued the company at approximately $3 billion, however the share price rise of 30% would mean that GoPro is already valued at $4 billion, which seems fair considering the company’s domination of their market and the overall success of their product. A lot of this value is also put on by the fact that they are expanding into content production and their much anticipated GoPro Hero 4 (or GoPro Hero 4K ) will likely do wonders for the company’s bottom line. This is because it will finally offer a major reason for people with GoPro cameras from virtually any generation to upgrade to it, without needing much else to improve. Even though, GoPro has proven that even their incremental upgrades can bring a lot of much needed improvements.
Also, now the company will be much more susceptible to investor jitters and pressure and any and all news can affect the company negatively or positively, so they’re likely going to treat the GoPro Hero 4’s launch very carefully and make sure that it gets the company the returns that their investors are likely going to expect.