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Cramer: GoPros & cons—A battle of bulls and bears

The bulls and bears are fiercely fighting over GoPro stock. Jim Cramer wonders, is this the real deal?

When the bulls look at this stock they see a company that could be a huge social media player within its video ecosystem.

When the bears look at this stock, they see just another overpriced fad.

"Me? I think GoPro is the real deal, but I also recognize that it's very expensive, which is why I told you to sell the stock a while back when it was trading in the $90s," said Cramer.

The maker of the popular action cameras reported a fabulous quarter recently, and caused the stock to soar. It is now up more than 20 percent since it reported.

So could this stock be worth holding on to for the long-term?

Nick Woodman, founder and chief executive officer of GoPro Inc.
Victor J. Blue | Bloomberg | Getty Images
Nick Woodman, founder and chief executive officer of GoPro Inc.

First, let's consider that this stock just went public in June. That means there are plenty of investors who are still in lock-up and cannot sell until Dec. 23. When that date comes, the stock could see a sharp pullback when people cash in.

To really understand if the bulls or bears will win out long term, Cramer thinks investors have to examine what the company has to do to keep bringing in money for shareholders.

The bull thesis holds that GoPro is a social media cash cow. If GoPro can figure out how to monetize the content of its videos, such as the popular one Cramer likes of the goat on a surfboard, then it will be a cash cow. (Or maybe a cash goat?)

GoPro photo
Source: GoPro | Facebook

Bearish investors think that this is just another doomed gadget maker that will be gobbled up by the competition. This is evidenced by the fact that 40 percent of GoPro's shares have been sold short.

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"The bears think that expectations for the company's social media strategy are too high, especially since GoPro hasn't even given us any idea of how they would monetize their social media content," said Cramer.

As for the "Mad Money" host himself? He's not a buyer just yet. But thinks it could be very attractive if a pullback were to occur. Just remember that a pullback too close to lock-up expiration in December isn't worth holding on for.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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