There was a time when those who invested in GoPro Inc (NASDAQ:GPRO) share, grabbed more than 200% return within a few months time. However, things started to roll once again and GoPro has picked up a negative growth trend. The shares of the company have lost more than 40% since October, and there are chances of going downer in the near future. No investor should look to go long in this situation, but one trader named Andrew Keene thinks against all the odds. According to him, the stock of GoPro is coming out of negative growth cycle swiftly.
Insights On The Matter:
GoPro came up with its IPO in June 2014 after a lot of hypes about it in the market. At first its share kept on increasing for a few months and touched peak in October when the average growth in its share prices was recorded as much as 200% from the opening prices. But after that point of time, it has been going down continuously. So far, the company has lost more than 40% of its peak prices.
On this trend, Keene says that investors shouldn’t judge the company on the basis of its performance after October. According to him, if investors have a look at the IPO price of the company, which is $30 and compare it with today’s price, then they will only find a positive growth. It has been a higher highs and higher lows kind of trend over the past nine months or so.
GoPro Inc (NASDAQ:GPRO) went from $30 to $96 within a few months time and then came down a bit, but still it’s going positively. Even though the GoPro stocks has got an image of high-momentum, high-beta option, but Keene thinks that the company is likely to bounce back. Instead of exiting, he is looking forward to purchasing January 2016 50/60 call spread for a price of $2.60, which is against all the odds. His move can prove to be motivating for those who have suffered the loss recently.