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Here's How Much Investing $100 In The 2014 GoPro IPO Would Be Worth Today

Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.

Benzinga · 03/12/2020 10:55

Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.

GoPro’s Difficult Decade

One market laggard of the last decade was action camera tech company GoPro Inc (NASDAQ: GPRO).

GoPro held one of the most high-profile IPOs in recent history back in June of 2014, selling IPO shares for $24 and raising $427.2 million. GoPro came roaring out of the gate after going public, but enthusiasm for the stock soon began to wane when revenue peaked in 2015 and has been trending lower ever since.

In recent years, GoPro has finally started to demonstrate that its advertising business is taking hold, but it has still struggled with consistency in growth and earnings numbers. The company’s most recent holiday-quarter earnings report once again missed Wall Street expectations, suggesting GoPro is still struggling to deal with rising competition and slumping demand.

GoPro hit its all-time high of $98.47 within months of its IPO before falling back below its IPO price by late 2015. GoPro shares dropped below $10 per share in early 2016 and have made a series of lower highs and lower lows ever since, a textbook indication of a bearish trend.

GoPro shares dropped under $5 per share in late 2019 at the same time the overall market was making new all-time highs. By the end of 2019, the stock had dropped to $3.25, a new all-time low.

GoPro has consistently been laying off employees for the last several years in an attempt to shrink its way to success by cutting costs, a strategy that rarely works on Wall Street. The company’s $1.19 billion in 2019 revenue was up slightly from $1.14 billion in 2018 but is still well short of peak revenue of $1.62 billion in 2015.

2020 And Beyond

GoPro shares bounced off $3.25 to climb as high as $5.03 in November, but they haven’t made it back above $5 so far in 2020. On Monday, GoPro hit its lowest level since October, dropping down to $3.32.

Despite the strong start to life on the public market back in 2014, GoPro IPO investors have taken a major overall hit in the past five years. In fact, $100 in GoPro IPO shares would now be worth $14.75.

Looking ahead, analysts are expecting somewhat of a bounce from GoPro in 2020. The average price target among the five analysts covering the stock is $4.50, suggesting 26.9% upside from current levels.

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