Should You Invest in GoPro?

PHOTO CREDIT: GoPro

OVERVIEW

GoPro Incorporation is a company based in the United States. The company designs, manufactures, and sells action cameras as well as the equipment and services which are complementary to their cameras. The company manufactures products such as the Hero9, MAX, and many others. The company was founded in 2004.

Why You Should?

1. GoPro has an extremely good brand recognition in all of the markets that it operates in. The company’s Hero product line is known to be the go-to action camera brand that millions of people around the world use. This strong brand recognition will benefit the company’s future growth and will also benefit investors in the company.
2. GoPro reported a solid holiday quarter, one of the most important times for the company. The earnings beat showed how consumers will buy the company’s products during holiday shopping. This time period has benefited the company in the past and will continue to benefit the company and its investors in the future.
3. GoPro will continue to develop and grow its strong subscriber numbers. The subscriber number is currently trending in the right direction and will continue to drive the stock higher if it continues. If a consumer has a GoPro subscription, they have unlimited cloud storage on the company’s video platform as well as special offers on some of the company’s products. This will benefit and drive the company’s future growth.

Why You Should Not?

1. GoPro has seen periods of little to no (and sometimes even negative) growth rates. This slow growth has really hammered the stock price lower and has hurt investors in the company in the past. This might continue to hurt the company and its investors in the future. I would be vigilant for key numbers and reports if I invested in this company.
2. GoPro faces tough competition from many other action camera manufacturers around the world. Some companies include DJI (the drone manufacturer), Garmin, and Sony. This tough competition has hurt the company in the past and might continue to hurt the company and its investors in the future.
3. GoPro has a history of delivering underwhelming products to the market, something which has caused the company’s abysmal growth rates. Furthermore, this has caused the competition to take market share away from GoPro. This has hurt the company in the past and might continue to hurt the company in the future.
4. GoPro has reported lackluster revenues and profits over the past couple of financial years. This might continue until the company delivers some solid products to the market and some solid numbers to investors as well. These lackluster revenues and profits have hurt the company’s growth and have also hurt investors in the company. In the financial year of 2020, the company reported revenues of around 891.92 million and a loss of around 66.2 million. In the financial year of 2019, the company reported higher revenues of around 1.19 billion and a loss of around 14 million.

PHOTO CREDIT: Yahoo Finance

MY OPINION

I think that investors should hold on GoPro until there is a clear turnaround in the company. The lack of growth, tough competition, inconsistent product delivery, and lackluster revenues and profits will continue to hurt the company and its investors. However, GoPro still has an extremely strong brand recognition, has grown its subscriber base, and recently reported a fairly strong holiday quarter.