GoPro shares: Price analysis before buying or selling

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No

ISIN code: US38268T1034

Ticker: NASDAQ: GPRO

Index or market: Nasdaq

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Elements to consider before selling or buying GoPro shares

Analysis N°1

The democratization of extreme sports is an interesting element to be considered

Analysis N°2

Of course, we will also follow the implementation of more and more partnerships for GoPro, which contribute to increasing its visibility and reputation in the world.

Analysis N°3

The group is tending to develop more and more services in addition to its cameras as well as applications and any new development will be interesting to follow.

Analysis N°4

We will also keep an eye on GoPro's competition, but especially on indirect competition from mobile phone manufacturers in particular.

Analysis N°5

The price of electronic components and its variations are also factors that can influence the activities, margins and therefore the GoPro share price.

Analysis N°6

Finally, we will look at how the GoPro group is able to position itself and develop in emerging markets.

Analysis before buying or selling GoPro shares

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General presentation of GoPro

The GoPro Inc. group is specialised in the manufacturing and sales of photo and video equipment. However although the major part of its activity concerns the camera itself, another part is responsible for the manufacturing and sales of accessories related to it.

With a total of 970 employees around the world, the GoPro group has experienced growing success over recent years due to the sales of a portable camera bearing the same name.

Photo credits: ©razgulyaev/123RF.COM

The major competitors of GoPro

The GoPro Company only produces one single type of product with which it has achieved an incredible success; this is the wearable camera of the same name. However, since the beginning of the GoPro wave of success certain large names in the digital photography sector are itching to claim this part of the market that has been taken by the current market leader in this sector, GoPro.

Kodak & Sony

This is notably the case with the Kodak and Sony companies that have both created their own ranges of sports cameras over recent years which are similar in many ways to those of GoPro.

Xiaomi

GoPro also faces growing competition from companies that undercut the sales price of their cameras. Certain companies such as Xiaomi, from China, are trying to position themselves on the market with cameras that are as effective as those of GoPro but are available at unbeatable prices.

The major partners of GoPro

Red Bull

In 2016 GoPro and the Red Bull group announced the implementation of a worldwide partnership aimed at content publishing as well as related cross linked distribution and promotion. In this way Red Bull obtained part of GoPro which, in exchange, became the unique supplier to the brand of content production technology.

Periscope

Still in 2016, the Periscope Company also became a partner of GoPro with a compatibility update of its application for the more recent GoPro cameras. The objective of this manoeuvre relating to the content publishing platform was of course to boost the real time display in the extreme sports sector and thereby attract more users.

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The factors in favour of a rise in the GoPro share price:

We shall commence this comparative analysis with a detailed summary of the strong points of the GoPro group as follows:

Firstly, the group benefits from a brand name that is highly popular in its activity sector. GoPro is actually the most well known brand name worldwide which represents significant value for this company and notably enables it to continuously attract numerous prospects.
The GoPro Group also manages to differentiate itself from its major competitors through its highly technological products and significant investments in research and development. Among the most popular devices of this brand we find the Grand Angle technologies, the slowdown function, the 1080 high definition and the 4K.
The fact that the products sold by GoPro are particularly polyvalent is another major advantage for this group that you should take into account when making decisions. In fact, the GoPro camera is often offered for sale with various accessories such as brackets and straps that enable different viewpoints. For the company this represents supplementary sources of income and therefore a real advantage in terms of profitability. Among the accessories the most sold for this brand we particularly find the selfies sticks and drones that are currently experiencing an increasing success.
Still related to the advantages of this company and its products we note the quality of the latter. In fact, the products developed and sold by GoPro offer numerous qualities such as a long life, a waterproofing that enables them to be used even under water and a great resistance to dust and shocks.

The factors in favour of a drop in the GoPro share price:

As you may have noted the advantages of the GoPro Group in its activity sector and market are numerous. But the weak points of this company should not be neglected and these we shall now explore in detail:

Firstly, concerning the industry in this activity sector, the GoPro Group displays a certain tardiness relating to the ROE and the ROA compared to its competitors. This is easily explained by the fact that the investments undertaken by GoPro relating to research and development are quite sizeable and therefore lower the profitability of this company over the short and medium term.
The second major weak point of GoPro concerns its pricing policy. In fact, although its products are of a particularly high quality that justifies the high price to a certain degree the competition in this sector is significant with products of a high enough quality to be able to offer similar products at lower prices.
This brings us to the last weak point that we will examine here individually and it relates to the general competition in this activity sector and the indirect competition. This indirect competition is particularly due to the current boom in smartphones that are increasingly advanced technologically and are equipped with cameras that offer high resolution thereby avoiding the requirement for the user to possess an external camera.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

Who are the largest shareholders in the GoPro Group?

Currently, the GoPro Group's capital is split between floating capital and shares held by large investors. These include Prentice Capital Management with 9.83%, The Vanguard Group with 8.19%, DE Shaw & Co with 4.69%, Silicon Valley Community Foundation with 4.38%, JPMorgan Securities LLC Investment Management with 3.36%, Maverick Capital with 3.21%, Renaissa,ce Technologies with 3.16%, Steamboat Ventures with 2.37% and Two Sigma Investments with 2.23%.

When and how did the GoPro share go public?

GoPro was listed on the stock exchange in June 2014. This IPO took place on the US NASDAQ market, where the share is still listed today, and more precisely, on the Nasdaq Global Select Market. On the occasion of this IPO, the group managed to raise 427 million dollars. Its market capitalisation was then 2.95 billion dollars.

What should be the first analysis of GoPro shares?

As with all stock market analysis, there are two types of analysis that you should prioritise when it comes to GoPro shares. These are, of course, technical analysis based on a study of stock market charts and technical indicators and fundamental analysis, which looks more closely at publications and market events that could influence the stock.

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Analysis before buying or selling GoPro shares