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GoPro Inc (GPRO)’s Nicholas Woodman Quick to Exit The Plunging Stock Price

GoPro Inc (NASDAQ:GPRO)‘s second offering has put a considerable amount of pressure on the company’s stock price, which was exacerbated by the company’s CEO, Nicholos Woodman, quickly getting rid of his share of the pie. On Bloomberg‘s segment ‘Market Makers’, Cory Johnson shared some of his insights on GoPro’s recent fall in light of this second offering.

GoPro

” […] The stock reacting and as a result the stock is down from that secondary price despite whatever the investment banks are doing in the public market today to support the deal that they just sold, and I think that it is worth noting that the CEO himself is selling about 40% of the deal today getting out of his shares […],” reported Johnson.

GoPro Inc (NASDAQ:GPRO) decided to go with the second offering at a price that is hard to fathom. It was nearly $10 below the prevalent trading levels at that time. 10.4 million shares were offered at a price of $75, when the stock was trading around the $85 mark. The adventure camera manufacturer formerly known as Woodman Labs was trading at $70.7, at the closing bell of the last trading day.

Another striking feature of  GoPro Inc (NASDAQ:GPRO)’s stock is the exceptionally high volume, according to Johnson. He mentioned that the stock has been trading at almost twice the average volume, which in itself is pretty high as well, standing at about 8 to 10 million shares a day, nearly half of the float. However, that is about to change soon with additional shares being released in the market.

GoPro Inc (NASDAQ:GPRO) has more than doubled since its IPO in June this year, and a large component of this rise has been the possibility of the company to venture into the content arena, something that was advertised heavily during the road show. However, the company has zero revenues from that segment to date, as it still remains to be seen how exactly will it dive into this sphere. The potential of content, however, according to many investors is substantial.

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