GoPro Inc stock outperforms market on strong trading day

The company expects its production facilities in Thailand and China to meet future demand. Yahoo Finance Live’s Rachelle Akuffo and Brad Smith discuss the decline in stock for GoPro following first-quarter earnings. GoPro Inc.’s (GPRO, Financial) strategic shift to lower pre-pandemic pricing and the introduction of entry-level cameras has been a game-changer. 212 employees have rated GoPro Chief Executive Officer Nicholas Woodman on Glassdoor.com. Nicholas Woodman has an approval rating of 58% among the company’s employees.

  • It also has GoPro’s newer stabilization capabilities with HyperSmooth 5.0.
  • Furthermore, as more than 50% of GoPro’s revenues come from outside the U.S., as the strength of the USD comes down, it will reflect better earnings performance in the future.
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  • GoPro closed 2022 with revenues of $1.09 billion with 9% EBITDA, generating $95 million in EBITDA.
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Revenue growth of 10% in the next five years and 7.1% in the next ten years. I base my estimate on the management’s commentary on expanding its TAM to target non-GoPro users. GoPro’s non-GAAP EBIT margins became positive in 2021, and although the margins declined in 2023, the decline is due to the challenging macroeconomic factors and the strengthening of the USD. Furthermore, it’s evident from management commentary that GoPro focuses on profitability and free cash flow generation. Before arriving at the intrinsic value of GoPro using discounted cash flow, I plotted a graph to understand how GoPro’s gross margin and non-GAAP EBIT margin have evolved in the last five years. The company has also done a restructuring exercise by closing its camera production facilities in Mexico, incurring an $8 million restructuring charge.

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Despite a slight early dip GoPro stock soon became one of the hottest stocks in town smashing past the $80 stock price mark in early October 2014. At that point investors thought there was no limit to how high it could go. However a triple figure stock price was not in its future. Despite huge tech stock success stories across the stock market during the same time, GoPro’s stock price has been on the decline since.

GoPro’s sales sunk enough for the group to see falling revenues and a net loss of nearly $420 million in 2016. A huge drop from a modest income of $36 million in 2015. The company entered the drone market in September but quickly recalled about 2,500 units of the Karma after some of them lost power mid-flight. The stock price reacted as expected to these mis-steps and losses, with GoPro’s stock price dropping to all time lows in the single digits as quarterly reported results dismayed Wall Street.

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  • GPRO ended the year 2014 at $63.22 after dropping to the low $50s in December.
  • The company has also done a restructuring exercise by closing its camera production facilities in Mexico, incurring an $8 million restructuring charge.
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The unlevered beta for GoPro is 1.61, and with 16.05% in debt to capital, the levered beta is 1.85. I derive a cost of equity for GoPro as 14.8% and a cost of capital at 13.04%. GoPro has $185 million in debt, and at an effective interest rate of 4.6%, my pre-tax cost of debt for GoPro is 4.93%. At an effective tax rate of 23%, my after-tax cost of debt for GoPro is 3.79%.

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Financial Performance

GoPro, Inc. develops and sells cameras, mountable and wearable accessories, and subscription services and software in the Americas, Europe, the Middle East, Africa, the Asia and Pacific region, and internationally. In addition, the company provides mobile and web applications that provides media workflow for archiving, editing, multi-clip story creation, and sharing content on the fly. GoPro, Inc. markets and sells its products through retailers and wholesale distributors, as well as through its GoPro.com website. The company was formerly known as Woodman Labs, Inc. and changed its name to GoPro, Inc. in February 2014. GoPro, Inc. was founded in 2002 and is headquartered in San Mateo, California.

Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. Our discord features automated Signals and Alerts for our VIP members. We want to help traders find success through providing you with enhanced trading tools. We develop advanced tools for simplifying your trading experience. You don’t need to worry about program terms, expiration dates, or model eligibility.

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Before I value DCF, I capitalize the R&D expenses because R&D expenses have future economic benefits. For example, GoPro has incurred $139 million in R&D expenses. First, I convert these R&D expenses from operating expenses to capital expenditures. After that, I add the unamortized portion of $280 million to the balance sheet.

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Look first at how all the markets are performing.Then leap into our advanced trading tools to seize the moment. Over the years, GoPro gopro trading has offered various trade-in incentives. You used to be able to send in your old camera and get a credit towards the newest model.

For sales to invested capital, I use a uniform distribution with a minimum value of 0.96 and a maximum of 2. My cost of capital for GoPro is 13%, taking into account the risk-free rate of 3.86%. As GoPro gets more than 50% of its revenues outside the U.S., I account for the country’s risks to arrive at equity risk premiums. GoPro’s revenues outside the U.S. are more than 50%, and any further strengthening of the U.S. dollar will impact its future earnings growth on a constant currency basis. The company’s balance sheet is healthy as it ended Q with $367 million in cash reserves and $224 million net of debt.

The trade-in fee is $99 for most models (from Hero12 Black back to the Hero5 Session). The exceptions are the Hero10 Black Bones ($199) and the Volta ($79). Here’s what you need to know about GoPro’s trade in program.

Growth Stock Down 96% to Buy Ahead of the Holiday Shopping Season

GoPro shares have fallen over 76% from their 2014 IPO, trading in the single digits at all time lows. The future of the stock price remains unclear but GoPro’s initial stock price positivity and optimism is long gone. GoPro’s stock price drop is now the main feature of it’s story.

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