GoPro has been one of the biggest technology success stories of the recent past, although GoPro stock has given investors a roller coaster ride since its initial public offering (IPO) and has settled at low levels. Still, good opportunities for traders and investors can often be found in tech stocks and companies with an advanced product like GoPro.
How to Buy GoPro Stock
Investing in GoPro stock offers a chance in the action camera market. GoPro is known for innovation and branding, appealing to content creators. Before investing, learn how to buy shares and factors affecting prices. Considerations include choosing a brokerage platform, analyzing GoPro's finances, and monitoring market trends. Following these steps can help you make informed decisions when investing in GoPro stock.
Step 1: Pick a Broker
Knowing your needs before selecting a broker can make your choice a lot easier. For example, if you have a lot of experience in the market and take positions in other assets, you may need a high-end broker with an advanced trading platform, volume discounts and extensive research resources.
On the other hand, if you have limited market experience and need to expand your knowledge base, you might look for a broker with strong educational resources and a trading platform with a user-friendly interface you can easily operate.
Some brokers will be able to fill your needs better than others, so be aware of what your needs are before making a choice. Here are our picks for a few of our favorite online stock brokers.
Step 2: Assess the Trading Platform
The majority of online brokers provide a free demo or virtual trading account so you can make trades in the market without risking any money. Opening several of these demo or practice accounts with different brokers can give you a good sense of which broker’s platform and services best meet your needs.
For example, TD Ameritrade’s platform has an interface that is easy to navigate and can be used by novice and experienced traders alike. Other brokers that are geared more toward seasoned and sophisticated traders, such as NinjaTrader and Interactive Brokers, offer advanced trading platforms and trading accounts with many other useful features.
Step 3: Fund Your Account
Once you’ve selected a broker and practiced trading through its online platform, you can now fund your account. Some brokers have no minimum deposit needed to open an account, but each broker has different minimum requirements and account funding methods. Check with your chosen broker to make sure it’ll suit your budget and preferred account funding method.
Step 4: Start Buying GoPro Stock
Once you’ve reached this step, it’s a great time to step back and watch GPRO stock for a few trading sessions to determine the best price to buy using technical analysis. Once you know how much you want to pay for the amount of stock you’d like to purchase, you can then either put a bid in the market for that amount at that price, or you can simply buy the stock at the best price currently available in the market
GoPro: Company and Stock History
GoPro designs, manufactures and markets durable action cameras for extreme conditions, as well as mobile apps and video editing software. Originally named Woodman Labs Inc., the company was founded in 2002 by Nick Woodman, a Californian surfer who invented the initial small camera that could be strapped to a surfer’s wrist and operated while surfing.
The company’s first camera was sold in 2004 and used 35 mm film that required processing and developing. Subsequent models were developed for digital still and video cameras, such as the Digital Hero released in 2006.
GoPro’s IPO occurred on June 25, 2014, when the company sold 17.8 million shares at $24 per share. The company was considered one of the best small cap stocks at the time of its IPO.
In 2017, GoPro released the HERO6 and the Fusion cameras with significantly more features than the company’s original HERO, although the company also laid off 500 workers that year due to a recall of its first drone, the Karma, released in early 2016.
Outlook for GPRO
GoPro's financial outlook for 2024-2026 suggests steady, yet modest growth, with earnings forecasted to align closely with industry averages. Analysts predict that the company will experience revenue growth, though it is not expected to exceed prevailing market rates, limiting its competitive edge.
In terms of financial health, GoPro's forecasted return on assets (ROA) and return on equity (ROE) are indicative of its operational efficiency and profitability. These metrics, however, may reflect a cautious approach, emphasizing the need for sustainable improvements in asset utilization and shareholder returns.
Despite the moderate growth prospects, analysts maintain a positive stance on GPRO stock, setting a price target that suggests potential upside. Investors may find promise in the stock’s ability to capitalize on niche markets, even amidst the broader challenges of high competition in the action camera segment. As such, while GoPro may not lead in explosive growth, its established brand and targeted strategies position it for steady performance through 2026.
Why You Might Want to Buy It
Investors may want to consider buying GoPro stock because the company is changing its business model to appeal to a wider customer base. By offering new products and improving subscription services, GoPro is becoming a lifestyle brand for everyone. GoPro stands out in the consumer electronics market with its high-quality technology and easy-to-use features. The company's cloud services and editing tools make the user experience even better. For investors willing to take risks, GoPro could be a good opportunity for growth. If GoPro's new models and pricing strategies do well with customers, it could become profitable in the future. Despite GoPro not making a profit now, its focus on research and marketing could lead to big returns for investors. It's a chance for investors to benefit from GoPro's potential turnaround.
Strong Brand Presence
Consider buying GoPro stock due to its strong brand presence. GoPro is a leader in the action camera market, with a loyal customer base that trusts its products for capturing adventures. This brand loyalty leads to consistent sales, even in a competitive industry. GoPro is known for its association with adventure and extreme sports, creating an emotional connection with consumers. This branding strategy boosts customer engagement and encourages repeat purchases, as enthusiasts seek the latest GoPro technology.
Furthermore, GoPro's brand includes not only hardware but also software and content creation strategies that cater to the customer experience. This ecosystem promotes customer loyalty, enhances revenue potential, and solidifies GoPro's place in the market, making it an attractive option for stock investors interested in tech and consumer goods growth.
GoPro's History of Innovative Products and Technology
GoPro has a history of innovative products and technology.They push boundaries with features like high-resolution video and advanced stabilization.Their rugged, waterproof designs catered for adventure enthusiasts.Consumers trust GoPro for capturing thrilling moments.GoPro integrates new technologies like cloud services and mobile apps.They stay competitive in a changing tech landscape.The company leverages user-generated content and fosters a community of creators.GoPro expands its product ecosystem with accessories and software solutions.This positions them as a leader in action cameras and content creation.Their history of technological advancement suggests a promising future.Investing in GoPro stock may be a good opportunity for growth.
Positive Future Earnings
Investing in GoPro's stock is recommended due to expected future earnings. The company's innovation and expansion are driving revenue growth. Demand for cameras and accessories remains high. Subscription services and customer engagement contribute to recurring revenue. Diversification stabilizes earnings and reduces reliance on hardware sales. Brand loyalty supports transition to a content and experience focus. Investors value companies with growth potential. GoPro's focus on innovation and market growth makes it a favorable investment choice.
Considerations Before You Buy
Before investing in GoPro stock, evaluate key factors like market position, brand reputation, and competition. Consider product innovations like the HERO10 Black and software enhancements. Analyze financial performance trends such as revenue growth, profitability, and cash flow. Use discount codes for stock insights to make GoPro shares more attractive. Be aware of risks like supply chain challenges and changes in consumer behavior in the market. Make informed decisions by weighing these factors carefully.
GoPro Competitors
Analyzing GoPro's competitors is important for potential investors. The action camera market is crowded with brands like DJ, Sony, and Insta360. These competitors offer similar products at competitive prices. The growing popularity of smartphone cameras also poses a threat to GoPro. To succeed, GoPro needs to innovate and stand out in the market. Investors should consider market trends, consumer preferences, and competitors' performance before investing in GPRO stock.
GoPro's Financial Performance
When considering GoPro stock, its financial performance is important. It shows the company's ability in generating revenue and managing costs. Metrics like revenue growth, profitability, and cash flow indicate GoPro's competitiveness and market adaptability. A strong financial performance allows for investments in R&D, marketing, and expansion. Investors should watch earnings trends, debt levels, and liquidity for long-term sustainability. Analyzing GoPro's financial health helps gauge market confidence and stock price potential. Evaluating GoPro's financial performance is crucial for informed investment decisions.
Potential Risks
When considering investing in GoPro stock, it is important to assess potential risks that could impact investment stability and growth. GoPro operates in a competitive market with threats from established brands and new technologies, which may limit market share and sales growth. Relying mainly on action cameras as its product line poses risks if consumer interest declines. Innovation challenges could arise if GoPro fails to deliver cutting-edge technology or adapt to changing preferences. Economic downturns can affect consumer spending on premium electronics, impacting GoPro's sales. Supply chain disruptions and rising costs can also negatively impact profitability.
Investors need to carefully analyze the potential risks and rewards of investing in GoPro due to the company's stock price being influenced by market perceptions and economic conditions. This understanding is crucial for making well-informed investment decisions.
Is GoPro Stock for You?
Stocks of companies that have recently gone public often follow a certain price pattern, depending on whether the stock is well received or not. Among the companies that tend to be well received are high-tech and innovative companies that have not yet made money but which still have cutting-edge products or desirable service.
Underwriters tend to underprice the company’s stock in the initial offering and that, combined with the public’s overenthusiastic misperception of value and media hype, can make the stock rally to prices that fail to accurately reflect a company’s real worth at the time.
Even Amazon stock, which had its IPO in 1997 at $18 per share, reacted in a similar fashion by trading over $100 per share in 1999, only to fall to under $6 per share in 2001. AMZN then consolidated by trading between $20 and $50 per share from 2003 until 2007. In 2008, the stock traded over $100, and it now trades vastly higher, at $1,869.67 per share.
GoPro stock currently seems to be trading in the post-IPO crash consolidation phase, and it may range near present levels for some time. Going forward, how well GoPro continues to innovate and hold market share for its products will determine its growth prospects and, ultimately, the price of its stock. For a patient investor, GoPro stock may present a good long-term investment opportunity.
Looking to begin building your portfolio? Check out Benzinga's guide on how to develop your own investing strategy.
Frequently Asked Questions
Is it worth buying GoPro stock?
Deciding to buy GoPro stock requires assessing your risk tolerance, investment goals, and belief in the company’s future. Despite challenges, GoPro’s strong brand and diversification offer potential. Research financials and market trends before investing.
Is GoPro publicly traded?
Yes, GoPro is publicly traded on NASDAQ under the ticker GPRO. Since its IPO on June 26, 2014, its stock is available for individual investors to buy and benefit from its market performance.
Does GoPro pay dividends?
No, GoPro does not pay dividends. Instead, it reinvests profits for growth and innovation, a common strategy among tech companies focused on expansion.
About Jay and Julie Hawk
About Julie:
Julie Hawk earned her honors undergraduate degree from the University of Michigan before pursuing post-graduate scientific research at Cambridge University. She then started work in the private sector as a business systems analyst for a major investment bank, where she qualified as a Series 7 Registered Representative and received comprehensive training in various financial products. Further honing her skills, she attended the prestigious O’Connell and Piper options training course in Chicago, mastering professional option risk management techniques.
Julie then transitioned into the role of a professional Interbank forex trader, currency derivative risk manager and technical analyst, ascending to the position of vice president over a 12-year career in the financial markets. Julie’s illustrious banking career spanned working for major international banks in New York City, London, and San Francisco, where she served as an Interbank dealer, technical analyst, derivative specialist and risk manager. Her responsibilities included educating, devising customized foreign exchange hedging and risk-taking strategies, and overseeing large-scale transactions for esteemed banking clients, including corporations, fund managers and high-net-worth individuals. As part of her responsibilities, Julie managed substantial portfolios of forex options, spot, and futures positions as a currency options risk manager, earning recognition for executing innovative and highly profitable forex derivative transactions. Julie also spearheaded educational conferences on currency derivatives.
During her banking career, Julie attained world-class expertise in technical analysis, including Elliott Wave Theory, and pioneered research into automated trading and trading signal systems. An active member of the San Francisco Writers’ Guild, Julie also authored trade strategies, educational material, market commentary, newsletters, reports, articles, and press releases. She became a sought-after market expert who was frequently interviewed by financial magazines and news wires such as REUTERS.
Following her retirement from the banking sector, she dedicated 15 years to online forex trading, mentoring and freelance writing for TheFXperts, which she co-founded with her husband Jay. Julie is the co-author of “Forex Trading: A Beginner’s Guide” and “Technical Analysis for Financial Markets Traders,” in addition to five other books on financial markets trading and personal finance. She now focuses on writing articles on financial markets for platforms like Benzinga, although she continues to trade forex online and mentor fellow traders as part of TheFXperts’ financial team.
About Jay:
Jay Hawk grew up in Chicago and Mexico City where he became bilingual in English and Spanish. After taking formal training as a classical guitarist at prestigious music conservatories in Europe, Jay then embarked on a remarkable journey into the financial markets, cultivating his notable expertise through hands-on experience that began on the Midwest Stock Exchange.
His financial career progressed as he started actively participating in various exchange floor trading activities in the Chicago futures and options pits, where he worked his way up the ladder, serving as a clerk, trader, broker, investor and fund manager. Jay then ran a retail stock brokerage desk and managed funds for large institutional investors, leveraging his discretionary trading skills to yield profitable results for clients.
This ultimately led to Jay holding exchange seats and operating as a market maker on options exchanges in Chicago and San Francisco, initially on the Chicago Board Options Exchange. Jay also played a significant role in the Chicago Mercantile Exchange’s evolution, where he contributed to launching and actively trading the first listed currency futures options. After transitioning to the West Coast, Jay then held a seat and ventured into trading stock options and their underlying stocks on the Pacific Options Exchange.
Jay’s comprehensive understanding of fundamental economic and corporate analysis continues to inform his trading and investment activities and has led to his subsequent success as an expert financial writer. Together with his wife Julie, he co-authored “Stock Trading: A Beginner’s Guide”, “Commodity Trading: A Beginner’s Guide” and “Fundamental Analysis for Financial Markets Traders,” among their published books focusing on financial markets trading, market analysis, and personal finance.
As an integral member of TheFXperts’ team, Jay now excels in trading forex online for his personal account, mentoring aspiring traders and writing for financial platforms like Benzinga where he specializes in covering topics related to the stock and commodity markets, as well as investing, trading and reviewing online brokers.