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FinanceGOPRO

GoPro Shares Fall Below IPO Price

By
Stephen Gandel
Stephen Gandel
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By
Stephen Gandel
Stephen Gandel
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November 12, 2015, 6:05 PM ET
GoPro Inc's founder and CEO Woodman holds a GoPro camera as he celebrates GoPro Inc's IPO at the Nasdaq Market Site in New York
GoPro Inc's founder and CEO Nick Woodman holds a GoPro camera as he celebrates GoPro Inc's IPO at the Nasdaq Market Site in New York City, June 26, 2014. Wearable sports camera maker GoPro Inc's initial public offering was priced at $24 per share, an underwriter said, valuing the company at up to $2.96 billion. REUTERS/Mike Segar (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY) - RTR3VVQUPhotograph by Mike Segar — Reuters

GoPro is the latest victim of the IP-No market.

Shares of the maker of high performance wearable cameras fell below their IPO price of $24 for the first time on Thursday. They once traded for as high as $98. On Thursday, the stock closed at $23.15.

Indeed, the ride for investors has been as dramatic as something that might be filmed with one of the company’s cameras. The company had a hot IPO last year, and months after, was one of the market’s highest flyers. But investors seemed to have got too caught up in the coolness of the company’s product. GoPro (GPRO) hasn’t lived up to his market hype as it struggles to expand beyond its extreme sports users. It also has faced stiff competition from Apple (AAPL) and others. GoPro’s sales growth is expected to slow to just over 20% this year, compared to nearly 90% two years ago.

GoPro’s shares might now be a bargain. At their current price, the company’s shares now has a price-to-earnings ratio of just under 19 based on 2015 earnings. This year, GoPro’s earnings are expected to increase 35% from 2014.

Nonetheless, GoPro’s shares have been caught up like others in a market that no longer seems to want to take a risk on technology and younger companies. Technology companies have only made up a small faction of the IPO market this year. And shares in nearly 60% of the companies that have gone public in the past year are now underwater, meaning they are trading below their IPO prices. We can now add GoPro to that list.

For more about GoPro, watch this Fortune video:

About the Author
By Stephen Gandel
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