Now that it is trading publicly the actual GoPro income statement will determine the price. At some point a fair market value will be determined. I believe one or two things will happen in the long run: 1.) either another, big time company will buy them out, or 2.) other bigger and well-funded companies will develop better cameras bringing in substantial competition whereupon GoPro will struggle. Either way I do not see a long term profitable return buying this stock.
The stock had been going up for months and months. The higher it went it became more susceptible to a sudden sell off based off any kind of bad news. It has happened before with Biogen and it will happen again.
I guess this is good news, but for me from a slightly different perspective. Biogen has tons of cash, which they could have distributed as a dividend. Instead they bought out Elan with it. So the stock goes higher. At some point I have to take my profits and run, and basically convert this action into real money. But where, exactly? I guess hang on for now as the signs point upward. But at some point it has to end. It always does.
I am surprised that this is getting little media attention. It is huge for people who want to accumulate stocks thru the DRIP strategy. It effectively has the same power as a 401K or IRA in terms of tax relief.