Shares of GoPro (GPRO - Free Report) were up more than 9% through morning trading hours on Monday, extending a three-day bullish run that has seen the action camera maker’s stock gain more than 25%.
GoPro’s recent momentum started last Thursday, immediately after the company updated its third-quarter guidance. The San Mateo, California-based brand said that it now expects quarterly revenue to be at the high end of its previously-announced range, with Q3 sales coming in between $290 million and $310 million.
“We set some stretch forecasts at the beginning of the year to be profitable on a non-GAAP basis for all of 2017 and post double-digit revenue growth. And we expect to do that,” GoPro chief operating officer CJ Porber said in an interview with CNBC’s “Squawk Box.”
GoPro shares soared more than 12% on Thursday in response to this updated guidance. That momentum continued on Friday, as the stock climbed another 2.6%. Today, shares of the camera maker are pushing even higher, hitting an intraday high of $11.37 in late morning trading. Monday’s peak represents a climb of nearly 30% from last Wednesday’s close.
Prior to this run, shares of GoPro had slumped more than 50% since October, and investor concern was nearing a breaking point. Widespread hesitation—caused by the fact that the company is losing ground to smartphones and lower-priced competitors, as well as key product delays and production issues—sent the stock tumbling.
But now, GoPro appears to be somewhat back on track. The company said that it is still on schedule to launch the Hero 6, the latest edition of its flagship action cameras, in addition to the company’s new Fusion 360 camera, by the upcoming holiday season.
Nevertheless, for now we have yet to see a significant analyst reaction to the updated guidance, and GoPro remains a Zacks Rank #3 (Hold). It seems logical that we might see some earnings estimate revisions soon though, so investors should keep an eye on this stock, especially if its upward momentum continues.
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