Shares of GoPro Inc. fell 6% to as low as $23.44 in early afternoon trade, dipping below its $24 IPO price for the first time. The stock has fallen around 60% over the last three months, vastly underperforming the S&P 500, down just 1.5%. Short interest on the stock has also reached record highs, quadrupling over the last 12 months to 33.2 million as of Nov. 1, the last time FactSet adjusted its short-interest data, compared with 8.2 million a year ago. The company’s stock has been in freefall since August, with analysts reporting lackluster demand for its new mini-camera, the Hero4 Session, and the company reporting weaker-than-expected third-quarter earnings in October. Last week, the stock took another hit when Polaroid filed a patent suit against GoPro’s Session camera. Sungard Astec Analytics, which tracks short interest, has named GoPro the No. 1 “hot stock” for shorts in the U.S. for two straight weeks. “Demand to borrow on the stock exceeds supply,” Sungard said.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News