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Thrill is gone for GoPro shareholders

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A man looks at GoPro Inc. cameras on display during the 2015 Outdoor Retailer Summer Market show at the Salt Palace Convention Center in Salt Lake City, Utah.
George Frey | Bloomberg | Getty Images

GoPro was one of the hottest momentum stocks last year surging 30 percent on its June IPO day and then rallying 100 percent into the end of 2014.

The problem with high multiple stocks is when the sentiment turns, things can get ugly fast.

GoPro shares are down approximately 40 percent in the past month even after it reported second quarter results in July that handily beat Street estimates.

Investors are getting worried that the product cycle may be slowing and the market is getting saturated.

"(GoPro) is a niche product who I believe every investor knows will become less and less popular with every life cycle of product. How many parents have bought their child a GoPro only to see it sit in the top drawer?" said Andrew Left of Citron Research.

He added, "whoever on Wall Street thought first person video of a 12-year-old skateboarding was transformative or compelling was drinking some real Kool-Aid. Why should this be any different than that instamatic camera?"

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