GPRO - Why GoPro Shares Jumped Friday
Shares of GoPro (NASDAQ: GPRO) are jumping today after the action camera maker reported a very profitable third quarter, ended Sept. 30. As of 12:40 p.m. EDT today, the stock was up 6.6%, down from gains of almost 14% earlier in the session. And there was a reason for that backtrack.
The company reported net income of $312 million for the quarter, which could lead it to its first profitable year since 2015. But looking a little closer, investors realized that while revenue did grow 13% year over year, it amounted to just $317 million. So how does a company earn $312 million in net income with just slightly more than that in total revenue? The answer is a one-time income tax benefit. But going into its typically strong holiday quarter, the company is still on track for a profitable 2021, even without that tax-related gain.
An action camera at the beach. Image source: Getty Images.
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Why GoPro Shares Jumped Friday