GoPro’s Lockup period expires on December 26. Read more on what to expect this holiday season.
Since the company became public, GoPro stock has nearly tripled reckoning it one of the market’s top momentum stocks. According to the CEO of GoPro, Nicholas Woodman, he told his employees that he would sell “a portion of my holdings” in the offering.
In the memo to employees, Woodman wrote that the $100 million the company expects to raise would “provide us with additional resources to invest in people, products, potential acquisitions, and infrastructure to help us achieve our long-term vision.”
Historically, on its first day the stock climbed 31% to close at $31.34, shares hit an intraday high of $40.47 on the second day of trading. Shares are currently around $57.00.
The 105% gains is a major feature by accomplishing this in four trading sessions. Analysts are speculating the stock fair value around $30 per share, suggesting a decline of roughly 40%.
I plan to sell a portion of my holdings in GoPro, but no one should misunderstand my commitment to the company or our vision. As I told investors on our earnings call last week, I plan to be a significant shareholder in GoPro for a long time. I’m a huge believer in our vision and our ability to realize it.
Nicholas Woodman
According to GoPro, there are two motives to support the lockup expiration. First, raise money to hire employees and make acquisitions. Second is to let the company gain control over its shares entering the market.
For consumers and Ace fans, this simply means that GoPro is here to stay. Look out for more interesting developments in the months to come.
*Be sure to check out the available for GoPro Floaty Backdoor
Featured Image: GoPro
