Students of Dow Theory should remember that in the first leg of a bear market, stock prices decline as investors abandon the hopes upon which those stocks were purchased.
GoPro (GPRO) went public about one year ago. In the first three months of trading, it tripled as optimism and hope about its products and sales spread. Since its October peak, GPRO has been adjusting to reality as hopes fade. See the chart below. Not every stocking this past Xmas had a GoPro in it. Some former longs are going over to the dark side of short selling. The number of shares of GPRO sold short has edged up to 9,674,600, according to www.shortsqueeze.com.
Coming up with a price target when a stock has a limited history is a problem.
The Point and Figure (P&F) chart above gives a downside target of $5, which would surely upset even the buyers of the IPO, long at $24. Point and Figure price targets are derived by measuring the sideways price activity and projecting it up (bullish) or down (bearish). The more sideways movement, the bigger the target. Because P&F charts ignore time, we have no idea when this $5 target may be reached.