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GoPro shares rise again, jumping 13%

June 30 (Bloomberg) -- GoPro Inc. shares soared 13 percent, the camera maker’s third straight day of gains after an initial public offering, amid optimism that revenue tied to users’ shared videos will fuel profit growth.

The stock rose to $40.55 at the close in New York. GoPro shares are up 69 percent since their market debut at $24 on June 25. The San Mateo, California-based company is now valued at about $5 billion, compared with $2.96 billion in the IPO.

GoPro’s first-person-viewpoint cameras, which let surfers, sky divers and bungee jumpers document their exploits, have attracted a younger generation driven by selfies and sharing adventures on social media. Last year, the company sold 3.8 million cameras, and customers uploaded almost 3 years of recorded footage. GoPro, which is already profitable, expects to start collecting fees this quarter from advertising based on that user-generated content.

“At some point, they’re going to have to make some real money off of their media business,” said Charlie Anderson, an analyst at Minneapolis-based Dougherty & Co. “If they can pull the trick Facebook and Twitter have done, as in pull a lot of user content, put a shiny wrapper on it and distribute it,” then the media business could be profitable, he said.