GoPro Valued at $3 Billion

Stock for the HD camera maker jumped 30% on opening day, valuing the company at $3 billion.
5:47 | 06/26/14

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Transcript for GoPro Valued at $3 Billion
I'm Michelle Franzen a New York as the financial markets close on Wall Street for this Thursday June 26 this historic stock. And once -- with the story today. Go pro company that makes videos like this possible opening up on the stock exchange today investors thinking that the high -- portable camera maker. Is worth get this three billion dollars. To explain all the -- behind this footage I'm joined by -- -- Yahoo! finance -- investors not holding back today this stock jumped 30% on opening day. Investors clearly excited about this little camera that can do so much. Absolutely so after the stock priced at a high end of its range -- 24 dollars showing enthusiasm over the valuation and that company -- it opened and as you said. It's and closed up close to 30%. From its opening -- IPO price which is a really solid game for our company that yes -- -- camera company but the interesting thing here is that this was valued. As in media company which speaks to this strategy going Torre in the future -- -- play for this company can't just be one product it has to be what their long term strategy as. And what they're trying to focus on is putting together and media platform. That monetize as all of that great created. Action packed but is it folks -- taking and and using that to sell ads on -- platforms like YouTube and they have a deal with Microsoft's Xbox Live and even virgin America says these are the things it's going to be focusing gone on going forward and -- -- to the company being looked at with with the evaluation and media company. And it really is just extraordinary point of view video and let's take a look at how the stock did on its opening day walk us through this chart. Yeah paso as I said it was a really nice pop -- that open and closed up about 30% from its IPO price -- definitely have very strong shelling. On what was -- pretty exciting -- just because it's one of those stocks that this story stock you know. Average folks can get excited about this one because they know that company they probably are formally with the product may be they have -- used it. So what's interesting is that that cobra actually worked with that company to open that sends shares at this IPO -- an IPO timing. Usually the kind of thing that only Wall Street insiders can get in on well they work for -- company to open up those shares in a portion of them. To their customers to their fame and so that just summoned there is supporters to that had used the camera can get and on the IPO because usually average -- can't really get in on that burst. Initial IPO buying at that nice pop right on the open that we see with -- and -- -- -- that are exciting. So that's -- was different about this company but you know I've talked and at colonists today who is very concerned for those. Average folks who got in on -- saying hey this might be a momentum play right now this might be driven by sentiment and then -- Smart mine gonna get out after they've seen a nice gain. Because he saw some red flags with that I -- -- as he mentioned three billion dollars is a rich guy tuition cheaper for this company. It is so where does that three billion dollar figure come from is very surprising or does it makes sense that you mention what this company plane itself as a media company. -- -- So we have seen -- way crazier violations for companies that are not even making money. One thing day. They go perhaps going for is that it is profitable and made sixty million dollars -- net income last year on revenue of close to a billion dollars so this is smoke and mirrors this is a legitimate company that is making money I -- does have a great product that has managed to see great growth. Or deliver great growth and revenue revenue was at 87%. In 2013. So strong growth. Really decent revenue for what is one product this waterproof camera that retails at a 199 dollars to 399. Dollars. Pretty decent margins in all of this with his strong brand that is allotted to continue to grow despite. Competition because there are some competitors now some not possible -- popping up in this space so the company didn't have does have a number. Positive attributes and then there's that you know the future strategy in the media component of this this is a company that. Date these videos have generated 500 million views on YouTube alone you know that's nothing to shrug adding they haven't -- a dime of that kind of ad revenue that that -- tank could supporter provide -- -- -- -- positive attributes but -- rich valuation -- -- -- -- investors -- -- looking. Looking out for -- A lot of potential do you think the public can also get behind the company's CEO -- -- sort of up. You know pretty and president -- surfer dude to now. -- -- Yeah ask the I think that's part of the fun aspect of that says that as a narrative and -- a story stocks so this CEO you know he promised that eaten by thirty he would make it is as an entrepreneur or do something else and he conceived of this company ten years ago when he was on the served tread you know one and video for he and his friends to be able to set circular sent in -- -- themselves when they were surfing and he was on this trip -- reportedly went is. His dot com marketing business had gone but so a great story just you know an entrepreneur or who really found this idea -- it. -- is so new but yet kind of audience -- with pink and now he's grown into this business that ten years later his tickets worth one point three billion dollars has surfer dude entrepreneur guy with the failed attack. Dot com company who now is a billionaire -- a lot of or at least as far as his his wealth is not in. -- -- -- -- Yeah a lot of surplus for that money a lot of fabulous surf trips I'm -- analysts -- Yahoo! finance thank you very much for joining you --

This transcript has been automatically generated and may not be 100% accurate.

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