GPRO Stock: GoPro Inc’s Next Project Could Send Shares Soaring
This Could Be Big for GPRO Stock
If you think it’s over for GoPro Inc (NASDAQ:GPRO) stock, think again. Sure, the company has lost quite a bit of appeal to investors due to growth concerns of its action camera business. But looking forward, GoPro is working on a number of strategies that can really expand its presence.
Let me explain…
One of the concerns about GPRO stock is that the company’s products do not have enough mass market appeal. GoPro’s core business is making action cameras. The idea came from its founder and CEO Nick Woodman who was trying to capture his surfing activities on film by attaching a 35 mm camera to his hand using a rubber band.
GoPro enjoyed enormous growth in its early days, because it essentially provided a solution to a pain point faced by those who wanted to capture their exciting activities on camera.
However, there are only so many people who enjoy wingsuit-flying or downhill mountain biking. And as time goes by, those who wanted an action camera may have already bought one. The niche nature of GoPro’s products might put a limit on the company’s penetration level in the entire market.
What GoPro really needs to do is expand its consumer base. Instead of just daredevils, GoPro could also push its products into the hands of content creators. Given that many videos on YouTube are shot with GoPro cameras, the company could market its products to professional content creators as well.
The neat thing is that GoPro is already pursing that strategy with its virtual reality (VR) rig. The company launched its 16-camera VR rig “Odyssey” last September. “Odyssey” packs 16 synchronized GoPro “Hero 4” black Cameras into an all-in-one rig and commands a steep price tag of $15,000. Moreover, only “professional content creators and producers” are allowed to buy it. Although the company is leaving out consumers at the moment, having professional content creators at this stage might not be a bad thing. For something as new as virtual reality, GoPro would want to make sure that the experience looks great.
The company is not going to leave the consumers out on its VR rig forever. At this year’s Consumer Electronics Show (CES) in Las Vegas, Nick Woodman said that there will be a more affordable version of GoPro’s 360-degree “Odyssey” camera and the more affordable version will be available to consumers. (Source: “CES 2016 Highlights: YouTube Unveils GoPro Partnership for 360-Degree Odyssey VR Camera,” Tech Times, January 9, 2016.)
Having different devices for different audience groups is a good move by GoPro. In the past, product differentiation hasn’t really been the strong suit for the company. For instance, when GoPro launched the “Hero 4 Session” camera, the company did not price it correctly and subsequently made two price cuts of $100.00 each time.
GoPro might want to further its move into the professional filmmaking industry. Due to the fact that a casual surfer and a professional filmmaker will likely have different budget constraints when it comes to cameras, offering them similar products might not be the best way to monetize. But since GoPro has always been targeting consumers in the past, how can it appeal to professional filmmakers?
Well, as it turns out, GoPro already has something to offer, although we haven’t seen it yet.
I’m talking about “Karma,” GoPro’s drone camera that is supposed to give people an “oh my God” moment. Other than being a hot product for consumers, “Karma” could also have strong appeal to filmmakers. Remember The Hunger Games, Skyfall, and The Dark Knight Rises? Yep, they all had footage captured by drones.
Right now, GoPro still has a lot to do to really improve the outlook of its core business. However, it’s safe to say that with so much under way, GPRO stock is far from over.
