Turns out Wall Street doesn't like unexpected charity work.
Shares in GoPro, the wearable sports camera maker, plummeted on Thursday after the company's chief executive Nicholas Woodman and his wife Jill announced they had donated $500 million worth of shares to a charity organisation.
In an unexpected announcement, GoPro, which went public in June and has seen its share price quadruple, said 5.8 million Class A shares had been exempted from its lock-up period ending in December.
The move caught investors off-guard as they dumped the stock with shares falling as much as 14 per cent in New York trading. The couple later announced they would provide further details and clarify the situation following a volatile session.
In a statement, GoPro added: "We are extremely proud of Nick and Jill Woodman for establishing a $500 million foundation for charitable giving...Any activity by the charity related to these shares would have to be accompanied by a public filing."
Late Thursday, the Jill + Nicholas Woodman Foundation said it had no intention to sell the stock in the near future. US media reports suggested that the early release of the shares may have been done for tax reasons.
The Woodmans added they are "grateful for the opportunities life" has given them and wanted to "return the favour" by doing more charity work. A source close to the couple reportedly claimed they had been considering making a donation even before GoPro went public and didn't want to wait until December.Reuse content