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INVESTING IN GOPRO STOCK 📈 Is GoPro Stock A Buy In 2017



Is GoPro stock a buy? GoPro has gone from one of the most loved stocks post IPO to one of the most hated stocks on Wall Street. GoPro had an IPO price of $24 in June of 2014 and surged to $86.97 a share by October of that year. GoPro stock fell to $40 a share in March of 2015, rallied to over $60 in August of 2016 and fell into a violent downtrend since then. GoPro bottomed out at $7.24 a share in March of 2017, roughly 8.3% of what it was back in June of 2014. As of March 24th, GoPro short interest is 32%, investors are bearish on this stock. Many investors bought in during the recent dip in March after the third round of layoffs was announced. Also, Citi analysts upgraded GoPro from a Sell to Neutral on the opinion that revenue growth would stabilize and they wouldn’t need a line of credit to stay afloat. Why GoPro Stock Crashed: 1. Competition emerged in the action camera market. 2. The overall market became saturated. 3. Existing GoPro products have a long life, upgrades aren’t necessary. 4. Improvement of smartphone cameras has hurt camera companies across the board, including GoPro. 5. GoPro made false promises of becoming a media company. 6. GoPro fumbled in the 360 degree camera market with the $5,000 Omni and $15,000 Odyssey virtual reality cameras. 7. GoPro fumbled with the release of the Hero 4 Session camera as it was overpriced, leading to two repricing efforts. 8. In late 2015, GoPro approved a share buyback at an average price of $23.05 a share, wasting about $36 million. 9. The Karma drone launch sucked, immediately followed by a recall. 10. They are developing new uses for existing action cameras instead of expanding their business into other areas. Some investors are bullish on GoPro because they believe that the downsizing will stabilize the business and help them achieve profitability. GoPro has a low enterprise value to share ratio. Limited downside potential makes GoPro a potential target for a buyout. Logically, it might make sense for Apple, Garmin or DJI to buy them out. However, many see a problem with the recent downsizing efforts. This is expected to result in slowing innovation, less brand presence for GoPro and an increase in quality control efforts as seen with the Karma drone launch. Their slow response to the standalone 360 degree cameras and virtual reality glasses is expected to get slower. GoPro is in no position to compete with other action camera companies, drone companies or the smartphone camera technologies. Here is my opinion of GoPro stock. The GoPro VR cameras are way too expensive, and the 360 degree cameras developed by competitors have already made them obsolete. GoPro has no future in virtual reality. There is serious competition in the drone market. The GoPro Karma drone launch was a flop as a result of a delayed release, pricing conflicts with retailers, supply chain issues, a recall and and mixed reviews of the drone. DJI, on the other hand, is crushing it in the drone market. GoPro seems to be a one trick pony with the action cameras. Smartphone cameras are becoming more capable and making standalone cameras obsolete. The recent downsizing at GoPro will likely hinder growth and innovation. Lastly, if someone wanted to buy them out, they likely would have as the enterprise value has fallen below $1 Billion. As they say on shark tank “For that reason I am out.” I am not going to be investing in GoPro. Website http://www.ryanoscribner.com Follow me on Twitter! https://twitter.com/RyanOScribner Facebook! https://www.facebook.com/ryanoscribner/ Personal Fitness Coaching http://www.ryanoscribner.com/shop Related Videos: I went All in Gobroke!!! Jeremy Gone Crazy! https://www.youtube.com/watch?v=YkmDOvkoQ0U Gopro is NOT Fitbit https://www.youtube.com/watch?v=QEsaqLe49Yw Related Articles: Investors Are Betting Big Against GoPro Stock -- Are They Right? https://www.fool.com/investing/2017/03/06/investors-are-betting-big-against-gopro-stock-are.aspx Better Buy: GoPro, Inc. vs. Garmin https://www.fool.com/investing/2017/04/10/better-buy-gopro-inc-vs-garmin.aspx Is GoPro Inc. Stock a Buy After Its Earnings Sell-Off? https://www.fool.com/investing/2017/02/22/is-gopro-inc-stock-a-buy-after-its-earnings-sell-o.aspx GoPro Stock Summary http://finance.yahoo.com/quote/GPRO?p=GPRO If this video brought value to you, please leave a like! If you are looking to find out more about anything I discussed, drop me a comment or contact me on Twitter. Subscribe to be updated on my journey through life!

Comments

  1. GoPro has a better brand recognition aspect, which you've failed to outline in your piece... Also, from the design perspective, easy pluggability/reusability aspect of their multiple products going to attract many buyers, whereby spending little over 1K could get you an action camera + stabilizer + drone... You might think you're an expert but in reality, you're just stating some of the old and outdated facts here. I think at $8.60-$9 range the GPRO is a great buy. My prediction is that the PPS of GPRO will reach $14-$16 at some point this year.
  2. I am dirt poor broke and recently stumbled upon your videos and I enjoy them! I am thinking one day I can invest the few bucks in my wallet and try to change my fate!
  3. I was watching youtube videos and this showed up in my recommended section!!! I was like sweet I gotta see this :)) I enjoyed! A lot of good info in here
  4. Ryan... Have more confident! If this how you review stock, you are on the right path. I cannot say much about "Financial Education". However, if the 3 parts series on GoPro is Jeremy standard, he is a joker compared to you.

    He was reviewing with extreme conflict of interest, that is ethically wrong (even analyst know that), he is just full of emotional and have way less balanced facts and actual analysis as yours is.

    One recommendation though, start with result (i.e. A buy/sell/hold) follow by analysis. It is more crisp that way! Cheers
  5. Liked! Could you do a video on the Tech IPOs that opened this year? Okta, Mulesoft, Snap, etc.
  6. Are you still bullish on AMD?
  7. I wouldn't even touch a camera company, but let's take a look......5 minutes in and I can already see problems with gopro, so here's my assessment to add, if anyone cares:

    218m cash equity with a working 1.19b income and nearly 700m expense doesn't leave much room for net profit after taxes. No dividends, no buyback plans, no new technology, no diversification plan for the future, no business model other than "sell cameras" among dozens of competitors (including the phone market, now that Apple just made a completely waterproof phone with camera)......102 million floating shares with 31 million shorted.

    Company evaluation for complete closure at this moment would give shareholders MAYBE $4.60 per share, and with not much quarterly net profits, doesn't look like the stock is worth much more than that. There's 50% more pressure on the Put options in trading, there's 70% volatility in the stock at the moment, and it's not looking good altogether. As I write this comment, the pre-market setup is looking for a 14 cent boost before they take a header around 9.14.....or dive, we'll see.

    To repeat some of the same disclaimers as I did with TSLA.....my assessment is based on pure valuation, what people do with their money is completely up to them. News, hype, emotions, they all play a role, but I'm not in the business of owning businesses.....or paying capital gains for selling stock that I held for over a year.
  8. Ryan is bearish on GoPro and bullish on AMD. Jeremy is bullish on GoPro and bearish on AMD... who will win?
  9. I bought 225 shares on the last dip. I can't complain about the returns so far. I'm not much of a long term investor, so I'm not really worried about their ability to expand. I always appreciate an honest and educated take on stocks, especially ones I've invested in.
  10. Fully agree with you...unsubcribed from Jeremy's channel after a while...because if he really put all of his $ in Gopro..then..i am def not not taking advice from him
  11. Thanks for all the great videos
  12. No need to apologize, i am subscribed to Jeremy and i think it's great to get different opinion. I do however agree with you on GoPro.
  13. go proo is not a buy, unless you want to lose all your money
  14. I think all your points are on point, thanks for all the great vids so far, cheers.
  15. talk about plug power it been on an uptrend for the last 2 days you seem like a very smart person.
    I believe it will go to 3 dollars by the end of the month because of the Amazon deal
    I also have 70k worth of shares invested in the company I don't like plug as a company but I do like amazon
  16. Another great vid. both of you are very informative guys and its great to have more "casual" stock youtubers to watch! also, a video explaining the difference between GAAP and Non-GAAP incomes? would be great because I still don't get that stuff and I know it is important when reading the annuals and such. thanks for your vids!!
  17. Excellent points Ryan I was hoping somebody would come out with this video.
  18. Good video Ryan , I bought in at 7.16 , I knew at this price it had limited downside ,they sure do have a lot of improvements to make, DJI is kicking their butt for now.


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