GoPro’s asset efficiency has improved due to its pivot toward the subscription model, as the asset efficiency improved from 12% in 2021 to 26% in 2022. This increase in asset efficiency implies that GoPro has effectively used its assets to generate profits and is earning a high return on its assets relative to its investment. In the last 30 days, GoPro’s share price has witnessed an appreciation of 10.9%. However, the share price declined by 11.9% on Friday, Feb. 3, after the earnings report. GoPro Inc. offered a downbeat outlook for its current quarter, and its shares are selling off Friday.
- While you’re planning your next getaway, you should also be thinking ahead to what stuff you need to make the experience more memorable, and a GoPro camera should be at the top of your list.
- The consensus among Wall Street research analysts is that investors should “moderate buy” GPRO shares.
- Thus, the story behind my DCF valuation will incorporate these estimates.
- Instead of sending your old camera back to GoPro for a few dollars, why not sell your camera on eBay (or Facebook or Craigslist)?
At the current market price, GoPro’s P/B value is the lowest it’s been in the last 10 years. At the same time, the company’s ROIC has improved from -6.7% in 2019 to 9.1% in 2023. Thus, at the current market price of $5.69, GoPro looks undervalued and underpriced from an investment perspective.
GoPro Announces Second Quarter 2023 Earnings Webcast
GoPro targets consumers and professional users interested in capturing high-quality photos and videos for personal or professional use. The company’s primary business model is selling its hardware products, such as cameras and accessories, directly to consumers through its website and retail channels. GoPro also generates revenue from licensing its technology and user-generated content to third-party companies. Additionally, the company offers cloud services and subscription plans for accessing and sharing footage captured on its cameras. If you’ve been planning to buy an action camera, you shouldn’t miss the opportunity to enjoy discounts with this year’s Prime Day GoPro deals. Outdoor junkies take advantage of Prime Day deals to stock up on supplies and purchase devices, including action cameras so that you can record all your adventures.
- However a triple figure stock price was not in its future.
- Yahoo Finance Live’s Rachelle Akuffo and Brad Smith discuss the decline in stock for GoPro following first-quarter earnings.
- After positivity from some areas of Wall Street, GoPro’s stock price moved back in the $60 territory in August.
- Before I value DCF, I capitalize the R&D expenses because R&D expenses have future economic benefits.
- Our tools work on all assets within TradingView’s library and it supports all devices with real-time data analyzed in seconds.
Instead of sending your old camera back to GoPro for a few dollars, why not sell your camera on eBay (or Facebook or Craigslist)? Then you can take that money and put it towards the newest GoPro model. This program doesn’t give a discount toward a newer model. Rather, you pay a fee and they’ll send you a replacement model.
The company was founded in 2002 as Woodman Labs and changed its name to GoPro in February 2014. Fundamentally GoPro’s stock price has dropped as the company GoPro has struggled with new product launches and the market has changed. To the dismay of some analysts, the company cut the price of its tiny Hero4 Session camera by $100 to $299 within three months of its launch in 2015. Also the standard of cameras in smartphones in the market has slowed demand.
In addition, as the company pivots to the subscription model, its DSO outstanding has been reduced to 22 days. Furthermore, the company has shown prudence in managing its supply chain and inventory by ending its inventory days at 55 days. GoPro closed 2022 with revenues of $1.09 billion with 9% EBITDA, generating $95 million in EBITDA.
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The best action cameras don’t necessarily come cheap, as they have a very small physical form to fit a lot of capability into. But that doesn’t mean you can’t find a GoPro with a discounted price. In fact, right now there are several GoPro deals worth pouncing on. We’ve rounded them all up, so read onward for more details. 2 Wall Street analysts have issued 1-year target prices for GoPro’s shares. Their GPRO share price targets range from $4.00 to $5.00.
Why GoPro’s Shares Popped 17.9% on Wednesday
Its product brands include HERO9 Black, HERO8 Black, Max, HERO7 Black, HERO7 Silver, GoPro Plus, and GoPro App. The company was founded by Nicholas Woodman in 2002 and is headquartered in San Mateo, CA. If you’re gopro trading looking for a camera that has just about everything GoPro has to offer, the GoPro Hero11 Black should be your camera of choice. It can record 5.3K video and take still photos at a resolution of 27 megapixels.
GPRO ended the year 2014 at $63.22 after dropping to the low $50s in December. The AlgoPro Scalper is complex software designed to make a large volume of high percentage, low risk trades on most time frames. With proven results and the ability to back-test this bot on any asset – it consistently produces profitable results and can be fully automated to most 3rd party automation software. GoPro’s D2C revenues are 40% of its overall revenue in Q and 38% in 2022, up from 33% and 34%, respectively. Another positive factor is that its GoPro.com business posted 5% growth in 2022 over 2021, driven primarily by 52% growth in subscription and services revenues. GoPro, headquartered in San Mateo, Calif., develops and sells cameras and wearable accessories, subscription services, and software in the U.S. and globally.
I value GoPro looking at its recent financial numbers and going with its story of pivoting toward the subscription model. Thus, the story behind my DCF valuation will incorporate these estimates. Furthermore, its Quik model subscription that serves non-GoPro-owning customers has grown 26% annually, reflecting the company’s commitment to engaging and retaining customers that don’t own a GoPro. The company treats these customers as an important TAM-expanding opportunity and plans to target them further with its upcoming premier-tier desktop app launch.
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In 2022, GoPro’s revenue was $1.09 billion, a decrease of -5.82% compared to the previous year’s $1.16 billion. Please log in to your account or sign up in order to add this asset to your watchlist. Upgrade to MarketBeat All Access to add more stocks to your watchlist.
GoPro’s ROE looks better vs. its peers and has reasonably low leverage, with its debt to total capital at 17.3%. However, its revenues across geographies decreased this year, with Europe decreasing by 24%, the Americas decreasing by 21%, and APAC decreasing by 4% annually due to macroeconomic factors and a strong U.S. dollar. Nevertheless, on an annual basis, APAC was the shining light growing at 9% as most regions in APAC emerged from 2021 lockdowns. The most oversold stocks in the consumer discretionary sector presents an opportunity to buy into undervalued companies.