16 ms·

GoPro is a failure?

stingrae 9y ago
It IPO'd at $24/share and is now $8/share. They are having a hard time releasing products and when they finally do make it out they are inferior to the competitors. (see karma drone)
JumpCrisscross 9y ago
GoPro closed today at 8 a share, a $1.1bn valuation [1]. They went public in 2014 at 24 (about a $3.3bn valuation) after raising a round in 2012 from Foxconn at a $2.25bn valuation. Their revenues are falling and their operations losing cash. They have $75 million of cash on their balance sheet, less than their Q1 2017 net loss. [1] https://www.google.com/finance?q=NASDAQ%3AGPRO&ei=fNBeWcCjCcXEe9iImNAP https://www.google.com/finance?q=NASDAQ%3AGPRO&ei=fNBeWcCjCc...
- jlarocco 9y ago
  It's not fair to say GoPro has failed simply because investors and traders had unrealistic expectations. The "action camera" market was already saturated in 2014, and it's hard to imagine how they would continue growing at their previous rate when they're selling replacements and minor upgrades. It's possible they're in the process of failing, but it wouldn't surprise me if trying to meet unrealistic expectations caused a large part of their problems. I think at this point the worst case scenario is that they get bought out by a bigger electronics company because their name brand alone is worth quite a bit.
  - bschwindHN 9y ago
    Agreed that it's unfair to call it a failure. GoPro is what most people think of when you suggest filming something sports-related. They made a product which does what it says it does, and has become a very recognizable brand for action filming. Nothing lasts forever, I'd mark their efforts a success.
    - mahyarm 9y ago
      Why buy a gopro when a $100 china commodity clone will do good enough? The sensors & lenses are going to be the same size, from sony and rubber gaskets with a hard plastic shell is not hard to do.
      - bschwindHN 9y ago
        What does this have to do with classifying them as a success or failure? But while we're on your topic, don't forget there is value in brand recognition and trust in a company which isn't a random Chinese vendor. And why do you think the Chinese clones exist at all? They followed the success of GoPro.
      - mpermar 9y ago
        Why would you buy an iphone if any cheap $100 android phone will do good enough?
        valuearb 9y ago
        For enough people a premium iphone is worth the wait xtra cost, which is why Apples smartphone profits are greater than all other smartphone makers combined.
  - mpermar 9y ago
    Right. GoPro to me is like the iPhone of the action cameras. Yes there might be other cameras with better performance, but when you think about an action camera and you have the budget you go for a GoPro. That can hardly be considered as a failure from the point of view of a product. Now, investor's point of view will clearly differ as per the data pointed out.
  - valuearb 9y ago
    They aren't a failure because their stock price is low, that's a symptom. They are a failure because they couldn't create a sustainable business, and are hemorrhaging cash.

GoPro is a failure?

It IPO'd at $24/share and is now $8/share. They are having a hard time releasing products and when they finally do make it out they are inferior to the competitors. (see karma drone)

JumpCrisscross 9y ago

GoPro closed today at 8 a share, a $1.1bn valuation [1]. They went public in 2014 at 24 (about a $3.3bn valuation) after raising a round in 2012 from Foxconn at a $2.25bn valuation. Their revenues are falling and their operations losing cash. They have $75 million of cash on their balance sheet, less than their Q1 2017 net loss. [1] https://www.google.com/finance?q=NASDAQ%3AGPRO&ei=fNBeWcCjCcXEe9iImNAP https://www.google.com/finance?q=NASDAQ%3AGPRO&ei=fNBeWcCjCc...

jlarocco 9y ago
It's not fair to say GoPro has failed simply because investors and traders had unrealistic expectations. The "action camera" market was already saturated in 2014, and it's hard to imagine how they would continue growing at their previous rate when they're selling replacements and minor upgrades. It's possible they're in the process of failing, but it wouldn't surprise me if trying to meet unrealistic expectations caused a large part of their problems. I think at this point the worst case scenario is that they get bought out by a bigger electronics company because their name brand alone is worth quite a bit.
- bschwindHN 9y ago
  Agreed that it's unfair to call it a failure. GoPro is what most people think of when you suggest filming something sports-related. They made a product which does what it says it does, and has become a very recognizable brand for action filming. Nothing lasts forever, I'd mark their efforts a success.
  - mahyarm 9y ago
    Why buy a gopro when a $100 china commodity clone will do good enough? The sensors & lenses are going to be the same size, from sony and rubber gaskets with a hard plastic shell is not hard to do.
    - bschwindHN 9y ago
      What does this have to do with classifying them as a success or failure? But while we're on your topic, don't forget there is value in brand recognition and trust in a company which isn't a random Chinese vendor. And why do you think the Chinese clones exist at all? They followed the success of GoPro.
    - mpermar 9y ago
      Why would you buy an iphone if any cheap $100 android phone will do good enough?
      - valuearb 9y ago
        For enough people a premium iphone is worth the wait xtra cost, which is why Apples smartphone profits are greater than all other smartphone makers combined.
- mpermar 9y ago
  Right. GoPro to me is like the iPhone of the action cameras. Yes there might be other cameras with better performance, but when you think about an action camera and you have the budget you go for a GoPro. That can hardly be considered as a failure from the point of view of a product. Now, investor's point of view will clearly differ as per the data pointed out.
- valuearb 9y ago
  They aren't a failure because their stock price is low, that's a symptom. They are a failure because they couldn't create a sustainable business, and are hemorrhaging cash.