Investing.com – GoPro was surging Friday as traders bet the company may be ripe for a takeover amid deal fever in the wearables space following Google's acquisition of Fitbit.
Google (NASDAQ:GOOGL) acquired Fitbit in a deal that valued the wearables company at $2.1 billion, or $7.35 a share. And now traders are asking whether other hardware makers like GoPro (NASDAQ:GPRO), maker of the Hero line of action cameras and Karma drones, will be snapped up, too.
It is not the first time that GoPro has been touted as an acquisition target. Tech giants Xiaomi and Apple (NASDAQ:AAPL) were rumored to be circling GoPro last year in an effort to expand their push into the wearables market. But both have so far decided to take a pass.
Many believe an acquisition for GoPro is not a matter of if, but when. With a balance sheet of a lot of debt and continuing losses, the company could do with some financial strengthening.
Speculative bets aside, investors will have the opportunity to get a deeper look at the action-camera maker when it reports third-quarter earnings after the market closes on Nov. 7.
But investor sentiment ahead of earnings has taken a hit after the company recently downgraded its full-year guidance for 2019, blaming a production delay for its new HERO8 Black camera.
GoPro is up just 3.5% for the year so far and has an average price target of $5.50, according to consensus estimates from Investing.com.