GoPro went public a few months ago (june, 2014) and is up +154,3% only in three months. Up +10,8% yesterday. IPO price per share in june was $23, then the shares skyrocketed quickly to $70 per share. There has been some overenthusiastic investor activity and this stock might not look attractive to a fundamental investor.
(Picture: GoPro Hero4)
I think that this is a sexy stock to have in a portfolio. It all began as an idea to help athletes self-document themselves engaged in their sport, and has become a widely adopted solution for people to self-document themselves engaged in their interests.
They transform the way consumers capture, manage, share and enjoy meaningful life experiences. it`s done by enabling people to self-capture engaging, immersive photo and video content of themselves participating in their favorite activities. Customers are some of the world`s most active and passionate people.
Not only athletes use GoPro cameras, as their products have fast become mainstream, and GoPro has enabled the world to capture and share its passions. In doing so the world in turn, is helping GoPro become one of the most exciting and aspirational companies of our time.
We saw a GoPro and Ambarella rally because three new cameras is launched. It`s new flagship «Hero4 Black camera» is the first model in GoPro`s lineup to support 4K video recording. It does so at up to 30fps.
It`s faster Wi-Fi, better low-light performance, an improved UI, and the ability to take 12MP photos at 30fps.
Hero4 Silver is the first model to sport a touchscreen that allows users to see their footage. They are also launching Hero that can record 1080p video at 30 fps. Hero could reel in first-time action camera buyers at a time when penetration rates are still relatively low. GoPro`s free video-editing software has been revamped.
The video processor supplier Ambarella rallied too. GoPro shares set a new high last week. GoPro`s guidance range of Q3 sales forecast is raised to the high end. Their growth prospects seems to be very good. The stock is in the middle range. Not cheap, nor is it expensive, with a multiple of 50 with a growth rate at 34%. I think many will jump in and buy on any dip, because the stock price is a bit crazy as the investors are focusing on the top-line growth. The revenue growth has been extremely impressive for GoPro so far, and they have a strong business model.
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