GoPro rocks Wall Street, shares surge on first day

GoPro rocks Wall Street, shares surge on first day

Credit: Andrew Burton/Getty Images

Nick Woodman, founder and CEO of GoPro speaks during the company's initial public offering (IPO) at the Nasdaq Stock Exchange on June 26, 2014 in New York City.

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by MATT KRANTZ / USA TODAY

KING5.com

Posted on June 26, 2014 at 11:28 AM

Shares of GoPro (GPRO) shot up 30% early in their first day of trading Thursday, as investors snapped up shares of the maker portable video cameras.

The stock gained $7.62 to $31.62 in mid-day trading as investors in the initial public offering bet that the stock still has upside despite initial shares being priced at the high end of the expected range. GoPro shares were sold to initial investors late Wednesday for $24. The initial expected price range was $21 to $24. The first trade of the day was for $28.65.

GoPro got an early lead in the niche market of selling small, portable video cameras that can be affixed to moving objects previously difficult to record. Extreme sports enthusiasts, for instance, can attach the cameras to their helmet to show off their daring feats on social media sites.

There’s a danger that larger camera makers could eventually take notice of the niche and enter with competitive offerings. But for now, investors are seeing the positives and hoping there’s more upside.

After GoPro’s deal, there have been 141 IPOs so far this year, says Renaissance Capital. That’s a powerful 56% increase from the number of IPOs during the same time frame in 2013.

And IPOs have been seeing strong reception. The average first-day gain of IPOs this year is 14%, says Renaissance. IPOs this year have already jumped 20% from their first day prices on average.

Longer-term, though, hasn’t been as rosy as many IPOs have been fading as they trade. The Renaissance IPO exchange-traded fund (IPO), a basket that tracks the performance of IPOs over the past two years, is up 3.6% this year, trailing the Standard & Poor’s 500′s nearly 7% gain.

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