This Could Save GoPro Stock
GoPro Inc (NYSE:GPRO) CEO Nick Woodman might finally be making good on his promise. One of his recent moves, albeit small, bears some good news for owners of GPRO stock.
The dashing and daring Nick Woodman has remained the talk of the town since taking his company public. But his daredevil persona has lately landed him a spot in the headlines for all the wrong reasons.
Recall that after GoPro went public, its founder-cum-CEO boasted of doing a “terrific job of growing an ecosystem.” That claim was largely rendered false when the company failed to sell the new lineup of its flagship cameras, the “Hero 4 Session,” in the last two quarters.
Woodman believed that his action cameras allowed users to not only capture, but also share their action moments in an intuitive way. Clearly, something was odd here. Four months ago, I made a call on what it was. The problem wasn’t with “capturing” but with “sharing.” (Read “GPRO Stock: This Should Terrify GoPro, Inc. Stockholders.”)
I don’t feel shy to say that GoPro holds a strong product portfolio with some great cameras. But what it has direly needed is a good software platform to support its hardware.
Woodman has finally heeded this demand. GoPro has just acquired two video editing smartphone applications—“Splice” and “Replay”—that are going to make it much easier for users to edit and share their GoPro videos. (Source: “Looking to Shake Things Up, GoPro Drops $105 Million on a Pair of Video Editing Apps, Forbes, February 29, 2016.)
Allow me to explain why this is good news for GPRO stock…
In the age of smartphones and social media, the aspect of live content sharing is critical. A GoPro user in action would expect swift editing and sharing for their videos. They wouldn’t want to wait to get onto their laptop, download the editing software, transfer the video, and then edit and share it.
The cumbersome and time-consuming process might discourage them from using the action camera altogether. They would rather just shoot it with their iPhone’s camera and edit and share it using a standard video-editing app.
Now, the best part about GoPro’s new acquisitions is the level of ease these apps offer against some very advanced editing features, which are otherwise only available on desktop applications.
In other words, the ecosystem Woodman wanted might finally be in the making!
The next thing that remains to be fixed is the company’s underfunded marketing campaign. The company’s management already acknowledges it to be the bane of their success. GoPro must look for strong celebrity endorsements and long-term corporate partnerships to boost its marketing efforts and bring its cameras back under the spotlight.
The Bottom Line on GPRO Stock
As long as the company continues to delay new product launches, it is almost certain that the next quarters will continue to disappoint investors and analysts alike. With no new cameras in its product portfolio and three old cameras being discontinued, GoPro is now heavily relying on its Hero 4 Session. The two app acquisitions might help attract some enthusiasts, but in the long-term, GoPro must innovate.
Eyes are now set on its next lineup of flagship cameras, the “Hero 5 Session,” and its drone camera, “Karma.” The market is anxiously waiting on the two. If these products find traction and the company manages to create the ecosystem Woodman talked about, GPRO stock might easily rally back to its all-time highs.