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Update: What We Make Of GoPro's Earnings

It was a very interesting after-hours trading session for GoPro (GPRO).

The company reported blowout numbers, as we expected would happen. Shares initially rose 14% on the quarter's fantastic numbers, including revenue of $633.9 million and earnings of $122.1 million, both of which beat estimates.

The tide then reversed when investors discovered buried in the 8-K that COO Nina Richardson tendered her resignation on February 2.

Once the CC started though, shares rose, before tanking up to 19% due to weak guidance. The company reported Q1 EPS guidance of $0.15-0.17, below estimates of $0.17.

The stock now stands 15% below its closing price.

The blowout numbers were expected by a lot of investors. The COO resignation was completely unexpected, whereas weak guidance was expected by some and unexpected by others. Therefore, it only makes sense to us the stock's downward response.

The COO resignation is troubling, as it doesn't make… Read More …