Is GoPro Stock Set for a 20% Pop to New 2019 Highs?

Shares of GoPro (NASDAQ:GPRO) never panned out the way early investors had hoped. In fact, some investors were really burned by GoPro stock after the action-camera maker went public.

GoPro went public in 2014 at $24 per share.GoPro stock quickly rocketed to over $90.

With GoPro stock now just under $6 per share, 93.7% below its all-time high of $93.85 , it’s safe to say that GPRO stock has turned off a lot of investors for good. Investors view its product as a commodity and something that’s subject to competition and cannibalization.

That’s true, but only to an extent. Critics used to say, “You can just tape an iPhone to your helmet.” That was (and still is) a stupid idea. But just because GoPro has a happy and loyal customer base doesn’t mean  that GPRO stock is a good investment. The stock price says as much.

After looking at the charts, however, I think that GoPro stock could advance.

Valuing GoPro Stock

We’ll get a quarterly update from GoPro when the company reports its earnings on May 9. For both revenue and earnings, GPRO’s fiscal first quarter is its weakest seasonal quarter. Not that that’s a secret to Wall Street, but it’s worth pointing out. Particularly as analysts, on average, still expect GoPro’s revenue to grow 15.9% year-over-year. On the earnings front though, they are looking for a loss of 9 cents per share. That estimate has fallen from a loss of 3 cents per share just 90 days ago.

For the full year, analysts’ consensus estimate calls for revenue to grow 6.2% year-over-year to $1.22 billion. but its earnings are expected to soar 225% to 29 cents per share this year.

Can GoPro deliver?

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