GoPro Stock’s Head and Shoulders Pattern Suggests Downside

GoPro, Inc. shares fell more than 10% in early trading on Thursday despite the company reporting better-than-expected third quarter financial results. Revenue rose 37.1% to $329.81 million – beating consensus estimates by $16.71 million – and earnings per share of 15 cents beat consensus estimates by 13 cents per share. The problem was that full-year revenue guidance came in sharply lower than analysts were expecting at $1.305 billion to $1.325 billion.

Prior to the third quarter financial results, some analysts had been bullish on the company’s prospects. Longbow upgraded the stock to Buy with a $13.00 price target on Oct. 18, saying that management had stabilized the business and improved execution. Interestingly, the analyst firm moved $30 million of its forecast fourth quarter sales to the first quarter due to planned inventory reductions, which could be the cause of the lower guidance. (See also: Sell GoPro on Google’s New Camera or Buy on the Dip?)

 

GoPro shares moved sharply lower after full-year guidance failed to impress, which could mean a breakdown from a head and shoulders pattern. …read more

Read more here: GoPro Stock’s Head and Shoulders Pattern Suggests Downside

Category: GPRO

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