GoPro up 30% in stock debut - KYTX CBS 19 Tyler Longview News Weather Sports

GoPro up 30% in stock debut

Posted: Updated:
  • CBS19.tv Web ExclusivesMore>>

  • Web Exclusive: Ultra HD TVs

    Web Exclusive: Ultra HD TVs

    (CNN) -Some people just have to have the latest in television technology. The newest TVs on the market- ultra-high definition TVs- or UHD TVs. They have higher screen resolution than current high def screens, and are also known as "4-K" sets. "More >>
    (CNN) -Some people just have to have the latest in television technology. The newest TVs on the market- ultra-high definition TVs- or UHD TVs. They have higher screen resolution than current high def screens, and are also known as "4-K" sets. "More >>
  • Web Exclusive: A product to help keep sharks away on sale

    Web Exclusive: A product to help keep sharks away on sale

    Monday, July 28 2014 9:40 AM EDT2014-07-28 13:40:46 GMT
    If you're headed on a beach vacation, there's a product you may be interested in to help keep sharks away.  The device is called a Shark Shield.  It is now being sold in Florida.More >>
    If you're headed on a beach vacation, there's a product you may be interested in to help keep sharks away.  The device is called a Shark Shield.  It is now being sold in Florida.More >>
  • Web Exclusive: Back to School costs really add up

    Web Exclusive: Back to School costs really add up

    Friday, July 25 2014 9:14 AM EDT2014-07-25 13:14:59 GMT
    Before you know it, fall will be here and it will be time to go back to school.  For parents that means stocking up on notebooks, number two pencils, and back to school clothes, all of which usually take a big chunk out of a family's budget.  So, just how much do parents will pay to send their kids off to school this year?More >>
    Before you know it, fall will be here and it will be time to go back to school.  For parents that means stocking up on notebooks, number two pencils, and back to school clothes, all of which usually take a big chunk out of a family's budget.  So, just how much do parents will pay to send their kids off to school this year?More >>

NEW YORK (CNNMoney)- GoPro is tough enough to survive close encounters with sharks, killer waves and even drops from outer space. Now the wearable camera maker is conquering Wall Street. GoPro officially went public Thursday on the Nasdaq under the ticker symbol "GPRO."

After pricing its initial public offering at $24 per share -- the top of its intended price range -- the consumer electronics company jumped immediately in initial trading and is surging over 30%. Shares are selling for over $31.

The GoPro IPO raised about $425 million last night. The deal values GoPro at nearly $3 billion based on its roughly 123 million shares outstanding.

David Menlow, president of IPOfinancial.com, said GoPro is clearly a "hot brand" that is "on fire" thanks to the popularity of its durable product.

A successful viral marketing campaign has amplified GoPro's visibility and cemented its extreme brand credentials.

One video shot on the company's HERO3 camera features incredible images from around the world and has generated 32 million views on YouTube over the past year. In 2012, Felix Baumgartner wore a GoPro camera to give the world a first-person view of his space jump from 24 miles above the earth's surface.

GoPro's HERO cameras represented a 45% share of the U.S. camcorder market by dollars in 2013, up from 11% in December 2011, according to statistics from The NPD Group cited in the company's IPO filing.

However, GoPro's growth appears to be slowing.

While the company's 2013 revenue quadrupled to $986 million, its first-quarter sales dipped slightly. Profits declined year-over-year to $11 million from $23 million in the first quarter.

The biggest risk facing GoPro is the threat a deep-pocketed rival will develop technology that tops its imaging and memory capabilities. Tech giants like Google are increasingly moving into the wearable gadget space with products that have built-in cameras.

Still, Menlow said: "First into a market usually gets the largest market share."

GoPro is hitting the public markets at an opportune time. Volatility is extremely low and investors continue to show a strong appetite for IPOs.

According to Ernst & Young, companies raised $117.7 billion in IPOs globally during the first half of 2014, up 60% from the same period in 2013. That's the best first-half performance since 2007.

However, first-day "pops" among U.S. IPOs dropped in the second quarter to an average of 9.8% from 12.3% during the first quarter, Ernst & Young said.

Foxconn, the Chinese company that manufactures iPhones and iPads, invested $200 million in GoPro in late 2012. That deal gave Foxconn a 9% stake and valued the gadget company at $2.25 billion.

The lead underwriters on the GoPro IPO are JPMorgan Chase, Citigroup and Barclays.

 

Powered by WorldNow

CBS19, MYTX & KCEB
2211 ESE Loop 323
Tyler, TX 75701
Phone (903) 581-2211
Fax (903) 581-5769

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KYTX. All Rights Reserved. Users of this site agree to the Terms of Service, Privacy Notice/Your California Privacy Rights, and Ad Choices.