GoPro Inc (NASDAQ:GPRO) is a little inflated at the moment and it’s time to take profits made on the company’s stock said Josef Schuster in a discussion about the hot technology stock on CNBC.
The discussion comes as GoPro Inc (NASDAQ:GPRO) just recently reported a beat for its second quarter 2014 performance yet getting hammered in after-hours trading on Thursday.
The company reported adjusted earnings per share of $0.08 which is above what the Street was expecting at $0.07. Revenue for the quarter ending in June, the second quarter for the company’s 2014 fiscal year, was reported to be $224.6 million beating expectations which was at $238.1 million.
Year over year, GoPro Inc (NASDAQ:GPRO)’s revenue grew by 38.1% and quarter over quarter, it increased by 3.8%.
According to Schuster, GoPro Inc (NASDAQ:GPRO) is a little inflated at the moment. The IPOX Schuster founder also said that this is now the time to take some profits made by buying the stock. However, he did say that the company, which he described as a hardware company valued like a media or social networking company, has a strong, underlying business model.
“I believe the price has ran ahead of itself right now. Obviously, the numbers [for the second quarter]were slightly better than expected. However, the company is basically valued at five to six times of sales. [It’s] a hardware company, essentially, but its valued [like a]media company [or]a social networking company. So it’s time to take some profits here. But nevertheless, there is an underlying strong business model in the next two years,” he said.
GoPro Inc (NASDAQ:GPRO) has essentially doubled its initial price during its IPO. Watch the video below where the valuation of the company was also discussed.