GoPro Inc. (NASDAQ:GPRO)’s stock continued to sink in the market on Monday trading session, going down by 5.15% to close the day at a low of $36.84. The drop in the market comes as Barron’s posted a cautious article about the company, highlighting that the post-IPO thrill was finally over for the company. Barron’s, Phil Roosevelt, in an interview on Fox Business, said that the company has gone out of control since its IPO period where it was trading at high margins; Johnson Controls Inc. (NYSE:JCI)’s, on the other hand, continues to soar in the market after an article from Barron’s.
“This is a stock that has gone out of control since its IPO a month ago it’s up 60%, trades at 80 or so times earnings. It is trading as if it has no competitor, and it is, in fact, facing serious competitors” said Mr. Roosevelt.
During its initial offering price in the IPO, the company’s stock rose to a high of $48 but has since dropped and is trading at the mid-$30 range suggesting something is not well in the company. Mr. Roosevelt was of the opinion that the company’s troubles are not yet over as competition continues to stream in.
“The competition is on the way, people may not know it, but it is on the way. Right now the Tour De France they have cameras on the Bike, but they are not GoPro,” said Mr. Roosevelt. Loosing appeal on a massive event like the Tour De France also highlights concerns about the company’s prospects going forward, especially on its camera division.
Barron’s seem to be having an effect in the market if events of the recent days are to go-by. The company had an article about Johnson Controls Inc. (NYSE:JCI) of which its stock is currently high in the market. Roosevelt believes that Johnson being a conglomerate in managing property could go high by up to 25% in the year if it can
maintain the current momentum.