#5 - GoPro (NASDAQ:GPRO)
What do you get when you cross a product that has failed to capture market share with a tantalizing stock price? You get GoPro (NASDAQ:GPRO). This company has failed to gain traction with its core product offering and has recently taken to the subscriber model to capture recurring revenue.
The largest problem for GoPro is that smartphone technology has become so good that many consumers are using their mobile devices to take live-action video leaving little room for GoPro’s offerings.
I suppose professionals may quibble, but there are obviously not enough of those to drive revenue. Case in point, GoPro recently initiated a debt offering that would be an additional $100 million to the company’s $157 million in long-term debt. Coming off what was largely seen as a solid earnings report in September, this is not going over well with investors.
A recent 15% drop in the stock price still probably leaves the stock overvalued. The smart play is not to chase GPRO stock until there is a more compelling story concerning a return to sustained profitability.
About GoPro
GoPro, Inc develops and sells cameras, mountable and wearable accessories, and subscription services and software in the Americas, Europe, the Middle East, Africa, the Asia and Pacific region, and internationally. The company provides cloud connected HERO12 Black, HERO11 Black, HERO11 Black Mini, HERO10 Black, HERO10 Black Bones, and HERO9 Black waterproof cameras; MAX, a 360-degree waterproof camera; Premium and Premium+ subscription services, which include full access to the Quik app, cloud storage supporting source video and photo quality, camera replacement, and damage protection; Quik subscription that offers access to editing tools, which allows users to edit photos, videos, and create cinematic stories; and Quik desktop and mobile apps that enable users to get their favorite photos and videos with footage from any phone or camera.
Read More - Current Price
- $1.21
- Consensus Rating
- Reduce
- Ratings Breakdown
- 0 Buy Ratings, 1 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $2.25 (86.0% Upside)
