Since its IPO date on January 30th, Shake Shack (SHAK) has skyrocketed higher. The company’s IPO was priced at $21, but it opened for trading on the secondary market at $47. After pulling back slightly over its first two weeks of trading, the stock began a surge that left it up 273% three months after its IPO date. Pretty remarkable.
If you feel like you’ve seen this before, it’s because you have. When GoPro (GPRO) IPOd last June, it took a remarkably similar trajectory higher. While the stock didn’t jump quite as much on its IPO date, it ran up nearly the same amount after three months of trading. At 67 trading days in, SHAK was up 273% from its IPO price. Over the same number of trading days, GPRO was up 278%.
The reason we’re pointing this out is because after the three-month mark for GoPro (GPRO), things took a significant turn lower. Below is a price chart showing the performance of GoPro (GPRO) and Shake Shack (SHAK) from their IPO dates. As shown, since the three-month point for GPRO, the stock has given back all of the gains it made after its first day of trading. Is Shake Shack doomed to follow a similar pattern? There will definitely be more potential for sellers to step in this summer as options trading becomes available and lock-ups expire.