GoPro (GPRO) Seen as Short Idea at Kerrisdale

Kerrisdale Capital affirmed earlier speculation that it sees GoPro (NYSE: GPRO) as Overvalued and is recommending a short.

The firm sees GoPro's strategy as unlikely to pan out. The company is perpetuating the idea that it is a media company, which Kerrisdale disagrees with. While GoPro has plenty of YouTube subscribers and video hits, the idea that it will be able to draw enough revenue from becoming a TV station is ludicrous, in the firm's opinion. GoPro is not a media company.

While some have likened GoPro's offerings to Apple's iPod, the camera isn't likely to be upgraded like the iPod is and the market is already showing signs of saturation, Kerrisdale noted.

Kerrisdale joined other activist short seller Citron Research, which made a short call on GoPro on Tuesday.

On Wednesday, Kerrisdale tweeted that it will be presenting on a new multibillion-dollar short on Monday, Oct 6. They said "It's the best short we've come across, ever. Stock worth $0."

Announcement! We're presenting on new multibillion-dollar short Monday, Oct 6. It's the best short we've come across, ever. Stock worth $0

— Kerrisdale Capital (@KerrisdaleCap) October 1, 2014

Kerrisdale even put together a humorous video in anticipation of the event:

Kerrisdale Capital - October 6, 2014 from Kerrisdale Capital on Vimeo.

Shares of GoPro are shrugging off the call and are up over 3 percent Friday.

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