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According to data revealed by S&P Global Market Intelligence, shares of GoPro Inc had soared 23.4% in January as investors had a bullish take on the company’s earnings prospects.

A number of daily factors have driven the action-camera maker’s stock higher, such as an optimistic analyst note and Black Rock, a New York-based global investment management corporation, increasing its stake in GoPro.

The bigger picture is that investors are becoming more bullish on the company’s upcoming fourth-quarter earnings release and the future sales of its action cameras and drones.

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The Karma drone has even returned to the market yesterday, February 1, following a recall that threw investors for a loop. The recall occurred after just a fortnight of its launch, as a number of them lost power during flight due to defective batteries. The foundation of GoPro’s drone dreams follows numerous operational mishaps, including messed-up launches, production delays and missed deadlines.

Karma’s success was seen as a crucial part of GoPro’s return to growth, along with the Hero5 cameras. The company had been optimistic that Karma would become a hit during the holiday season. However, with Karma withdrawn from the market during the holidays, there are some expectations that the fourth-quarter might not be better than the third.

GoPro is slated to deliver its earnings report after Thursday’s closing bell. Investors are recommended to watch out for critical metrics such as revenue, inventory and gross margins. Should those aspects improve, the GPRO stock would have more room to grow.

Even with issues like its stiff rivalry with Amazon and delayed shipments, GoPro still boasts a desirable retail presence. Only a few consumer technology firms have this kind of retail presence and this could work in GoPro’s favor.

GoPro also remains hopeful about the success of its hardware launches in the prior year and expressed it expects returning to profitability in the fourth-quarter. The company projects to generate non-GAAP diluted earnings per share of 30 cents, on revenues of $625 million in its earnings release today.

This would be the first quarter to present the performance of GoPro’s first major update to its flagship line of action cameras in two years: the new Hero5 Black camera and Hero5 Session, which is the smaller and cube-shaped version. The Hero5 Black is possibly one of the best action cameras in the current market and has received enthusiastic reviews.

According to analysts, GoPro seems to have sold more cameras than expected during the recent holiday season, which should reflect well in the upcoming report. The new products and software updates will give a much needed boost to GoPro’s top line.

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However, analysts are reminding investors to note that despite last month’s 23% gain, it should not be a signal that the worst is over for GoPro, given the volatility of its shares in 2016. The company has had a depressing earnings history, having missed estimates thrice in the last four quarters, for an average negative surprise of 26.9%. In the third quarter, GoPro missed analysts’ forecasts by 29.6%.

If fourth-quarter results fail to beat estimates or if the Karma drone proves to be faulty again, the GPRO stock could immediately plunge once more.

Nonetheless, investors are relying that GoPro can learn from its mistakes and is potentially on the way to being an impressive long-term stock for investors.

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