GPRO Stock Forecast for 2016
Anyone holding shares of GoPro, Inc. (NASDAQ:GPRO) has suffered enormous losses in 2015. But I’m not giving up on GPRO stock yet. Just because the maker of action-oriented cameras missed expectations doesn’t mean it’s destined for the trash pile.
GPRO stock still has a chance to recover in full. Rebuilding the GoPro brand will be an uphill battle—a monumental struggle—but not one that is doomed for failure. After all, the firm’s products are widely cherished, as are the videos it releases on YouTube.com.
GoPro’s YouTube channel has more than 3.5 million subscribers. Granted, that doesn’t mean much in terms of cash generation, but there are conceivable ways of monetizing that strength. Doing so could help reignite some faith in GoPro stock.
Aside from expanding its influence as a media company, there are two logical expansions for GoPro. Luckily, the company is already branching out into both of these domains, meaning it understood that investors were awaiting action.
GoPro Needs its Mojo Back
The upside for GoPro stock depends heavily on its ability to break into new areas of filmmaking. The first and most obvious is a drone-based camera. (Source: “What GoPro needs to do in 2016 if it wants to survive”, Quartz, December 17, 2015.)
Filming landscapes, weddings, and music festivals with drones has already become wildly popular, raising questions as to why GoPro wasn’t the first one into the market. Nonetheless, the company is releasing its own drone early next year.
The drone, called “Karma,” should be available by early next year. GoPro has already released some footage with its aerial device, and it appears to have a smooth balance and easy handling. How the drone performs is incredibly important since GoPro is a little late to the party.
With so many quadcopters already on the market, drone enthusiasts have had time to form preferences. They could be a little resistant to change, but GoPro might sway them with package deals of cameras and drones together.
The other sphere open for the taking is virtual reality filmmaking. GoPro has developed a line of 360-degree camera rigs that cost anywhere between $3,000 and $15,000. They allow content creators to develop material for an immersive environment, which could soon become a force in entertainment. (Source: Ibid.)
Facebook is coming out with the “Oculus Rift” in early 2016. It will be the first VR headset available to the public. Developers are already working on video games and “experiences” for the console.
GPRO Stock Could Soar Next Year
Both virtual reality and drone-based devices could be huge for GoPro. The company’s success is entirely contingent in branching out to new customers—especially since sales growth for its “Hero4” seems to have cratered.
If GoPro is able to monetize the growth of these industries, it could possibly regain the trust of investors. The company needs to show that it wasn’t a one-hit wonder, that it can still capture the imagination of consumers.
At that point, GPRO stock could skyrocket, giving the company enough breathing room to plan a full-fledged recovery over the next few years. Let’s wait for 2016 and see.