GoPro (NASDAQ: GPRO) is an American technology company founded in 2002 and it was listed on the NASDAQ stock exchange on June 25, 2014. It manufactures action cameras and develops its own mobile apps and video-editing software.
The company year on year earnings growth rate was negative over the past 5 years and its stock lost 80% of it’s value which put a lot of pressure on investors as they are not making money. However, during the fourth quarter of 2018 and first quarter of 2019 the fundamental situation for GoPro turned around with strong earning number. The switch in the fundamental situation for the stock drove the growth expectation higher as GoPro’s earnings is looking to grow significantly at over 20% yearly.
GoPro Past and Future Earning Per Share
The stock rose 70% in the recent 5 months but the price remains in the cheap territory. The technical chart of GPRO shows a corrective 3 waves pullback that took place from 2014 peak and reached the 100% Fibonacci extension at $4 which was the reason of the bounce. We believe the market is ruled by technical aspect and the news is an after-fact event to drive the market into the pre-determined direction.
GPRO Weekly Chart 05.10.2019
The stock will be looking for at least for a larger 3 waves bounce to correct that decline and the move higher could turn into a new bullish cycle with enough momentum and extension.
Since December 2018, GPRO rallied in an impulsive 5 waves structure before doing a 3 waves pullback that found buyers at blue box area $5.75 – $5.34 then rallied higher again. The stock managed to create a bullish sequence against $5.6 low and as long as it remain above that low then it can aim higher toward $8.5 – $10.3 area.
GPRO 4 Hour Chart 05.10.2019
The fundamental and technical picture for GoPro is pointing to a decent recovery and more gains to come, therefore investor can be looking for buying opportunities in 3 or 7 against May and December lows.
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