GoPro Stock At Historic Low. Is It Time To Make A Move?

To say that GoPro (NASDAQ:GPRO) has endured a bad year would be putting the current predicament of the stock mildly. GoPro is an innovative action camera company marketed on the premise of youth, adventure, and freedom to capture great moments. As with many new and innovative tech companies, they owned the market…. until copycats began to pop up and undercut GoPro.

The biggest mistake of GoPro was in not using their huge brand image to diversify into other market segments. For instance, their image could have been used to launch an exclusive content portal, covering sports, entertainment etc. Moreover, huge improvements in smartphone camera technology and selfie sticks has meant that the GoPro is no longer a must-have. GoPro is facing tough competition from smartphones and copycats.

These market pressures and other factors have caused GoPro stock to lose 75% of its value during the current financial year, and 60% of that loss came during the past few months. As a result, investors are looking at the stock with some trepidation- and rightfully so. However, GoPro still has some (more on that later).

GPRO stock chart

Source:GoPro Stock Price Data by amigobulls.com

Once a stock has lost 75% of its value, some might argue that it is basically dying a slow and painful death; however, GoPro has some strengths which might make you take a second look.

Zero debt

In this day and age it is challenging to find an American family with zero debt; not to talk of of a company worth more than $2.5 billion. Moreover, GoPro has $513 million just sitting in the bank. Therefore, when it comes to financial security, GoPro is in a lot better situation than a lot of companies.

Astonishing brand power

Such is GoPro’s reputation as a camera manufacturer that the term ‘GoPro’ has become a synonym for action cameras. It is worth noting that GoPro has an amazing public perception. Through Youtube and strategic partnerships, they have managed to create a perception of being an adventurous, youthful, and energetic brand. The aforementioned are attributes which are challenging to ingrain in the public perception.