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GoPro (GPRO) Could be the Next Flip - Henry Blodget

September 29, 2014 12:03 PM EDT

Traders are chatting about Business Insider's Henry Blodget attempt to quantify the valuation of GoPro (NASDAQ: GPRO), one of the market's hottest stocks.

"To justify today's stock price on the basis of discounted cash flow, GoPro will have to generate $1 billion to $3 billion of profit in 10 years," Blodget said. He added, "To generate $1-$3 billion of profit at a 15% profit margin, GoPro would need revenue of $5 billion to $15 billion."

Overall, Blodget said these numbers are not insane to believe, which could justify the current price and even more upside. However, he also warns that the hardware business in fickle and hard to predict. GoPro could also be the next Flip - a camera manufacture that Cisco bought for $500M only to write it off as a complete loss.

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