Seeking Alpha

GoPro sets $21-$24 price range

  • GoPro's (GPRO) price range implies a valuation range of $2.59B-$2.95B. (prospectus)
  • The sports/action camera maker is looking to raise $187M-$213M by selling 8.9M new shares. Another 8.9M will be sold by existing holders, including 3.56M from founding couple Nicholas and Jill Woodman. Underwriters have a 2.67M-share overallotment option.
  • At the midpoint of its range, GoPro is valued at 2.8x 2013 sales, and 46x 2013 earnings. Both sales and earnings rose 88% last year.
  • Prior coverage
Comments (5)
  • hungryjack
    , contributor
    Comments (4) | Send Message
     
    Have been waiting for $GPRO to go public for years now. Love the products and have used them extensively. However, after seeing the mid point valuation of 46x 2013 earnings; not sure if I will be jumping on-board during the public IPO. Thought?
    11 Jun, 01:18 PM Reply Like
  • bazooooka
    , contributor
    Comments (2342) | Send Message
     
    Its coming out at 2.5 to 3x sales. Earnings won't be maximized since they are still growing the company. If you think they can grow at 30%+ for the next 5 years then the company will eventually have Revenues that exceed market cap (by decade's end). It's all about growth right - or maybe being bought out. If you see neither then I'd look elsewhere in tech. Tech is always boom or bust and it can change almost overnight.
    11 Jun, 03:24 PM Reply Like
  • hungryjack
    , contributor
    Comments (4) | Send Message
     
    Good points; I absolutely believe 30%+ growth is sustainable, especially as they invest more into R&D and expand from solely a hardware company into a media brand. I think an interesting, non-traditional M&A opportunity down the line would be Monster or Redbull. Gopro is synonymous with these brands and the athletes already heavily use and endorse the products. The cultures would mesh seamlessly and the marketing opportunities would be endless. BTW, $GPRO is offering IPO shares on the website LOYAL3 to the general public for the same price that Wall Street and Underwriters get. Shares are limited, first come first serve; just reserved my shares:-)
    11 Jun, 09:13 PM Reply Like
  • machiavelli
    , contributor
    Comments (414) | Send Message
     
    I bought FB knowing these tech stocks are pumped so HARD... I will do the same for GPRO... have you ever heard anyone refer to a camera as a "gopro" like they do now... trademark win and sales driven by reckless males... double victory.
    11 Jun, 06:23 PM Reply Like
  • Dale Korpi
    , contributor
    Comments (47) | Send Message
     
    If you believe in the product it seems examining the chip supplier AMBA for the bigger story is worth the time. See recent articles on AMBA, I can vouch that producer types like the product, I have two in my family. Let's hope ...
    11 Jun, 06:55 PM Reply Like
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