GoPro spiked from its offering price of $24 to $31.34 yesterday in its first day of trading. Today the company built on that success, adding nearly $5 more to its share price, ending the day at $35.92, up 14.60 percent during regular trading.
All told, GoPro is now up a total of 49.67 percent from its IPO price, making it more than a successful IPO. Its rapid ascent will surely be read by some that investors have shaken off their technology-stock jitters and are ready to put money into growing tech firms.
Alibaba waits in the wings. Box will kick off its roadshow eventually. Perhaps they will both benefit from GoPro’s tailwind. Every company is different, and what investors appear to see in GoPro is by no means an obvious convert to other companies, but there could be broad overtones that bode well for future flotations.
How are other recent IPOs faring? Zendesk is still up nearly 100 percent from IPO day to $17.16. MobileIron has given up most of its initial IPO run, but remains up a modest 6 percent at $9.57. Arista Networks is up more than 40 percent to $62.55 after a big first day. And King is down sharply from its IPO price to $17.85. A partially mixed bag, sure, but I think that when you add GoPro’s statistics to that mix, the overall picture is indeed positive.
So, who wants to go next?IMAGE BY Flickr USER Ed Schipul UNDER CC BY 2.0 LICENSE