NEW YORK (TheStreet) -- GoPro (GPRO) shares are down 7.2% to $66.98 in trading on Monday following an analyst note suggesting that the action camera company's holiday sales bump has already been priced into its current valuation and that the company will continue to slide in the fourth quarter.
Parke Shall of Orange Peel Investments isn't just critical of GoPro, but of the entire retail sector as he notes that while Thanksgiving weekend foot traffic and online sales were up, the National Retail Federal reported a double digit drop in sales during the period.
"However, while GoPro isn't a retail store in and of itself, it's still subject to some of the same euphoria that the rest of the retail sector is. For instance, we believe GoPro's recent run up, despite its CEO and his family unloading shares, is an anomaly that's a product of wishful thinking heading into the holidays. This week's trading could reveal that saturation in GPRO stock could be setting in," said Shall.GPRO data by YCharts