GoPro Stock Up 65 Percent Since IPO

Stock for the company that boasts "The World's Most Versatile Camera" has nearly doubled since it launched last week.
4:55 | 07/01/14

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Transcript for GoPro Stock Up 65 Percent Since IPO
It's I'm Michelle president New York it is Tuesday July 1 step -- this -- story -- Today all eyes are on go pro as investors continued to light what they see. From the go anywhere capture at all camera maker. Here to discuss what is behind the continuing to Oprah stocks surged -- MacKey and Yahoo! finance. Jeff the go pro IPO last Thursday with a huge success the company hasn't stopped there though why the Wall Street. -- there. Traffic got a little Momo going on there -- they're grown -- are way and so yeah I've kind of been an amateur hour out there were up seventeen some percent today the stock is officially. Doubled since it was priced last Thursday and trust me it was because they found a bunch of extra fundamental value working over the weekend. It's just that big buzz taking off let's take a look at a five day charting give us an idea of walk us through this -- here it's quite quite a -- Well that's. That's a graphical -- representational crazy town there. Immediate you know you see it -- its accelerated we go about a blow off top back in the trading pits. But implicit in matter is that they're actually going to topic some might you know it -- major does not make these things is not a chart that occurs and natural condition. Stocks really shouldn't go up 20% today without a catalyst of some sort. And at this point you know it sounds very simplistic but sometimes that's the best explanation. There are simply more buyers and sellers no one is letting go of Argo -- stake there's not a lot of money. Two to build places to -- your IPOs are typically fast money dollars. To chase these stocks and sometimes these momentum names is playing themselves particularly in holiday shortened weeks. And you know you mentioned about this exuberance is that -- rational -- it's a bubble that we're seeing play -- off here. No -- IEA you know that there's a bubble and the word bubble. Ex bears that -- is perhaps some exuberance are certainly some enthusiasm optimism. A certain sense of -- -- I mean -- there's excitement. But in terms of the -- a -- is a real company with real live revenues they're overpriced relative to consumer electronics companies. But if you look at them as say a software company or something about -- -- is that they go pro doubled the revenues last year. They earn money it's not necessarily all that expensive at least it's not. One of them -- -- -- a stock -- actually on looks much more expensive on multiple basis. Now go pro clearly -- -- hasn't doubled in a fundamental ways since last week. Clearly there's going to be competitors -- really time is the only thing it tells you whether or not something's a bubble. And what you're doing when you fund these companies so lavishly as you're giving an awful lot of free money effectively. To Abacha Smart people who invented this -- so go -- case they're gonna need to come up with a wider -- array of products are gonna make sure. That they're still buddies with Google and apple and all those other partners that are gonna make their continued success possible. But in terms of a bubble I would not look at this is the sign of the apocalypse or goat entrails or anything if I see a bunch of really cheap camera knock -- going public in the next few months. Then we can talk Bobble. Product and also partnerships company founder nick Woodman borrowed some 200000 dollars from dad to start the company -- dad's stock. Get this is worth 280 million dollars. -- did the -- that's at 140000%. Return on investment. Yeah yeah I did the -- to it and my kids are being punished accordingly now -- -- nice pictures and stop. Her -- MI my son is eighty Jeremy very lovely picture my daughter lavender and she's wonderful to the kids -- -- -- and a let you know let me -- seem selfish in light of this go broke -- I mean look what he's doing -- -- kids I -- turn around and sell that art I'll be honest with ourselves -- emotionally attached to my son maybe five -- Maybe ten but certainly not a 180 million -- -- -- got to pick up their game is the last night I think. Exactly lessons to the kids out there so when does this and I mean it's going up up up that can't just be this holiday week. -- -- -- -- And it's it's hard to take this all that seriously again it's a good six billion dollar company which is real big money but. I -- take this seriously though folks don't chase this stock at on this -- -- you're gonna get heard on this. Is if you actually try to start treating their stock like a professional -- -- they're gonna pull the rug out from their stock. And you what I will be watching this and will be down 5% one Big Ten percent and you'll get all kinds newbies coming in and -- try to chase that we'll try to buy dips. And the truth is this is just animal spirits and it's really really tough place for professional investors play let allowed individuals. Please don't -- this at -- seriously just like your money on fire go -- mega Lotto tickets. I've seen this rodeo a bunch of times and always ends of the cowboy getting trampled. Don't just run out by go pro stock. We will take that advice Jeff MacKey of Yahoo! finance thank you for joining us. And you've been watching stories -- they would ABC news dot copy your latest headlines I'm Michelle Franzen in New York.

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

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