Why I Plan On Investing In The GoPro IPO

Why I Plan On Investing In The GoPro IPO

GoPro is getting ready to release their official IPO (Initial Public Offering) and join the stock market within the next 2 weeks. I received an email from GoPro yesterday asking if I wanted to participate and reserve the power to buy some of their IPO's and I instantly signed up and transferred funds.

After posting to Facebook about my excitement that GoPro (GPRO) was officially going to be publicly traded, I received quite a few messages from people. A few of them really wanted to know why I was so excited because they felt that GoPro has, in a way, peaked at this point. That was a very valid topic to bring up and if you step back from the "HERE WE COME" excitement and buzz that usually surrounds a company and their IPO announcement, you can see the numbers to show that GoPro has in a way nearly peaked but no one seems to consider that they have a LOT of new gear to release, new patents pending, and software in the works.

gopro revenue chart

As of now, a majority of GoPro's revenue comes from sales of their HERO3 and the HERO3+ cameras along with the batteries, mounts, wi-fi remotes, and other accessories. In 2013, they nearly doubled the 2012 sales by bringing in approximately $985 million. TheStreet pointed out that in 2013, the company's growth actually showed signs that it wasn't growing as fast anymore. in the first quarter of 2014 we saw revenue drop to $235.7 million though they did have a strong fourth quarter in 2013 due to holiday sales. So this still kind of leaves people on the fence about whether or not GoPro can bring in more profit or if it is jumping in the stock market at its high.

hero3+

What can we expect to see from GoPro to make that revenue keep going up? The obvious answer is a NEW GoPro camera. Rumors have been going around for awhile now that the next GoPro HERO4 will be a game changer. With possible 4k recording at 30fps, 1080p at 120fpx, and even 720p at ahuge 240fps. All of this on top of many other advancements from the HERO3+ are said to be in the next release. It will be the perfect camera for a huge amount of consumers no matter what your focus is on. The GoPro cameras have almost made a permanent footstep in the video production world. I see them at almost every wedding, sporting event, bike ride, and everywhere in between. The price point of the cameras and quality they give off make them a must have for everyone.

On top of a new camera being released, I believe we can expect to see more accessories. We already have been seeing some releases of products such as new boom arms, helmet suction cups, and more. A lot of their recent commercials on TV have even been showing off some cool visuals created by the use of different kinds of mounts for the camera. It looks as if GoPro is always pushing out something to change the scene and increase the production levels across the board for all skill levels.

gopro 3 way mount

GoPro does not seem to want to stop at just cameras and accessories, they signed an agreement with Microsoft's Xbox to start a new video channel which will offer advertising opportunities along with having Virgin America as a partner as well. The team GoPro has put together recently has a strong focus on producing content using their actual products to show what it can truly do. Branding is a strong focus and we can already see it working on their Facebook, Instagram, Twitter, and especially Youtube account. The company looks to be jumping into a new chapter with a focus on media sharing, but doing so with the branding of their product and making the media clearly focused on GoPro usage.

"GoPro said in its prospectus it has 42 issued patents and 68 patent applications pending in the U.S., and 15 corresponding issued patents and 12 patent applications pending in foreign countries. Those patents include designs for camera's and software, in addition to physical structures, image processing, operational firmware and other types of software." - TheStreet

Everyday I find myself on their Youtube channel and Instagram watching videos of skydivers walking across slacklines between two hot air balloons, insane surfing videos, first person views of motocross races, and much more. To be able to have one central location for everything GoPro related would be ideal and it is nice to see them recognizing this. I am excited for what they have to come and am confident that the company will be releasing amazing new products this year that will launch them into great profits. They are unique and the competition just can't keep up as of now. I'm excited for the GoPro (GPRO) IPO and you should be too!

What are your thoughts on GoPro's IPO?

[Some information sourced from TheStreet.com]

Disclaimer: This blog post is for information purposes only. The views expressed in this post do not constitute buy or sell recommendations. The author does not guarantee the validity of the content. Readers should do their own diligence and consult with an investment professional before making any decisions. Trade at your own risk. This article is based off the opinions of the author only and does not reflect the intentions and viewpoints of the website as an entire entity.
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John White is a photographer from Northwest Indiana. He specializes in individual portraiture. Outside of photography, John enjoys building websites for fun, doing graphic design, and creating videos. Also, he really loves Iron Man. Follow him on his social media profiles to keep up to date with what he has going on!

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18 Comments

Well if you bought 10 years ago instead of an Apple Imac comp their shares in the same value today you could have a house for selling those :) Go Pro is kind of more specialized company so I do not think they will reach as high but still they will be up and growing on Wall street quite well IMO...

Don't buy at the IPO...NEVER buy at the IPO. Wait until a day or so after until initial hype dies and the price plummets....THEN buy.

Unless you have millions you'll never get the opening price and that is another reason to wait on it.

Got in at $24 yesterday with the IPO, today it is currently sitting at $38. I'd say that waiting would have made me miss out on a 50% gain

I am glad I just did it.

' I am excited for what they have to come and am confident that the company will be releasing amazing new products this year that will launch them into great profits. '

...and this is why you shouldn't take investment advice from photographers.

"I will soon have a financial stake in the well-being of this company" + "I think this company is awesome and here's why...!"

This "article" isn't informative, editorial, or educational -- it's a walking conflict of interest.

No, but you're a walking logical fallacy. For there to be a conflict of interest, John would have to already be invested in GPRO. Don't assume the question.

It's a data-driven, factually-based post about a company that's extremely relevant to the readers here.

From the "article": "I received an email from GoPro yesterday asking if I wanted to participate and reserve the power to buy some of their IPO’s and I instantly signed up and transferred funds."

I'm not sure if you know how IPO's and the stock market works, and I'm no financial wizard, but I'm savvy enough to know there doesn't have to be the magical moment the instance he actually owns the stock for there to be a conflict of interest. John's has financial upside right now by encouraging others to believe in GoPro. By increasing public sentiment for GoPro and generating buzz, this may increase demand for GoPro stock as soon as it is available, and that will increase the stock price and John's financial position.

In this automated digital world, there are crawlers, scrapers, and aggregators combing the web for mentions and sentiment about people, topics, and companies, and an article like this can affect that.

Jon's right. Glad to see that at least the "and you should too" was removed from the end of the original title.

The author has already transferred money, presumably through Loyal3, into this stock offering. So, yes, he is already invested in it. Whether his original intention was to bolster the stock price or not, this piece feels like it has an ulterior motive. And this is not the first time I've felt like "articles" on fstoppers have had conflicts of interest.

I appreciate all your hard work and the time you've spent to build this community, but I'll be unsubscribing from your RSS feed. There are other places to get photography-related news.

Yup!... "the company will be releasing amazing new products this year that will launch them into great profits. They are unique and the competition just can’t keep up as of now. I’m excited for the GoPro (GPRO) IPO and you should be too!"... Sounds like John is making the forward-looking statements that GoPro would also love to have out there to boost confidence but that they can't legally say themselves.

I think it is a smart move that GoPro isn't only focusing on their cameras and accessories but emphasises on the content that can be created with it. This makes the camera only part of the equation, ensuring sustainability for the company in the long run. If they play their cards right.

For the sake of argument, didn't a lot of people feel the exact same way about the Flip camera? Cisco eventually bought the company and shut it down. It's hard to imagine something else better could ever come along until it does.

lol. The "Flip" camera isn't quite the same comparison. Like comparing against Polaroid.

Wow... $21 to $24 a share?

They are starting off pretty high

IPO usually means, "It's probably over priced." All the stuff you mentioned is already factored into the opening price. I am not saying this can't be a good investment, just that you have no background in analysis to give out financial advice.

GoPro has the advantage of being the industry leader, and for good reason. The products are good, they are the industry standard for people who use this stuff, and the company keep upgrading. But why do they need the public money now, and not private funds? They don't need the money, and are going public because the market is overpriced.

Hmm, if you had used a GoPro as a product then you would already know that the Hero3+ BE already does 4k video recording?

So slightly inaccurate on the hardware front giving false pretences of upcoming advancements.

y'all have not been following ipo's at all this year. do some research and you'll understand. get in on this, keep an eye on it, and hop out in 2 weeks if you still think it's going to become bearish...