GoPro (GPRO) lost money last quarter and the stock is trading down after hours. It’s pretty brutal when a gadget maker loses money during the 4th quarter…where folks tend to buy a few gifts. Here’s your trade. (February 03, 2016)
GPRO
In this video we’re going to look at GoPro ( NASDAQ:GPRO ), or as I call it NoGo. The company reported earnings after the bell. You can see where the little blue hash marks are. Right now they’re around $9.00, it will probably go lower, even by the time I finish this video. Look, the thing is (or not), the thing is, the company reported earnings and they lost money. They lost $11.5 million. You think, “Well, Jeff Bezos has been doing that for a decade and a half, two decades.” Yes, but these guys, a year ago, made 145 million. So the bottom line is this: I’ve mentioned it before, all Apple needs for it’s iPhone is a strong piece of Velcro and some kind of selfie stick, where you can turn it on just before you go do what you’re going to do. This company just, frankly, shouldn’t have gone public, but it did, here it is. So here’s what you do: On a weekly chart it’s just kind of going straight to zero. But if you look at on the daily chart this stock could go clear down to $7.00 without TECHINCALLY getting oversold, if you’re just looking this on Bollinger Bands.
Here’s what we’re going to do, we’re going to look and see how this trades. Typically what happens? A big, massive selloff on a negative reaction. Similar to a big, massive rally on a positive reaction to something. And then we get a snapback, a reversion to the mean. If you look at this stock right now, the CLEAR support level here is this low of 8.50. So here’s your trade, if you want: As long as the stock is ABOVE 8.50 tomorrow then go ahead and be long this stock. But you BETTER be long the stock just for a TRADE. Because I’m telling you, this stock is going lower. Their only way out is to be bought by somebody (maybe they can hire Marissa Mayer to help them out). But 8.50 is the floor on this stock for a TRADE. By the way, I would absolutely not be buying this thing on the way down. If it breaks below 8.50, get out of there. Right now 8.50 is support, 8.85, maybe 8.90 or so, on a real short-term basis; and these are really all the levels you have to work with. Other than that, just know that the trend is down. You’re taking this for a trade ONLY for an oversold bounce. Here’s my bet: The stock’s not going to be at $9.00 tomorrow. It’s either going to be above 9.50 or below 8.50, and that’s that.
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