This is a step-by-step stock review to answer the question, is GoPro (GPRO) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is GoPro (GPRO) stock a good buy?
1. GoPro (GPRO) Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founded in 2002: GoPro was started by Nick Woodman in San Mateo, California.
- Inspiration: Woodman sought a way to capture high-quality action photos and videos during his surfing adventures.
- First Product: Released the HERO 35mm, a wrist-mounted camera, in 2004.
- Digital Transition: Launched its first digital camera, the Digital HERO, in 2006, revolutionizing action photography.
- GoPro HD: Introduced the HD HERO in 2009, offering high-definition video, which became a game-changer for extreme sports enthusiasts.
- Global Popularity: Quickly became the go-to brand for adventure seekers, athletes, and content creators.
- IPO: Went public in 2014, listed on NASDAQ under the ticker symbol GPRO.
- Product Evolution: Continuously innovated with new models, including HERO4, HERO5, and the recent HERO11, offering advanced features like 4K video and waterproof designs.
- Drone Entry: Launched the Karma drone in 2016, although it faced challenges and was eventually discontinued.
- Media Expansion: Transitioned towards becoming a media company, promoting user-generated content through GoPro Awards and the GoPro Channel.
- Diversification: Expanded its product line with accessories, apps, and software for editing and sharing videos.
- Community: Built a robust online community, encouraging users to share their adventures and experiences.
- Commitment: Continues to innovate, focusing on delivering cutting-edge technology for capturing life’s most exciting moments.
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: overpriced
- Score: 11/100
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how GoPro (GPRO) makes money:
- Camera Sales: Makes money by selling action cameras like the HERO series to consumers worldwide.
- Accessories: Sells a variety of camera accessories, including mounts, cases, and batteries.
- Subscription Services: Offers GoPro Subscription, providing cloud storage, camera replacement, and other benefits for a monthly or annual fee.
- Software and Apps: Generates revenue from mobile apps and editing software designed to enhance the GoPro experience.
- Merchandising: Sells branded merchandise, such as apparel and gear.
- Licensing Content: Earns money by licensing user-generated content for marketing and media purposes.
- Advertising: Generates revenue from advertising partnerships and sponsorships.
- Media Production: Creates and distributes original content, earning revenue from media projects and collaborations.
GoPro uses these various streams to maximize their earnings and provide diverse services to moviegoers.
Here are a few of the other companies that GoPro has acquired over the years.
- Replay App
- Splice App
- Skybotix
- General Things
- CineForm
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how GoPro (GPRO) stacks up against other companies.
- Apple Inc.(AAPL) – 61
- Turtle Beach Corporation(HEAR) – 56
- Sonos, Inc.(SONO) – 50
- Koss Corporation(KOSS) – 44
- The Singing Machine Company, Inc.(MICS) – 28
- GoPro, Inc.(GPRO) – 11
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
Here are Nick Woodman’s major accomplishments at GoPro:
- Product Innovation: Nick Woodman Led the development of groundbreaking camera models like HERO series, revolutionizing action cameras with compact, high-quality designs.
- Market Expansion: Expanded GoPro’s market presence globally, securing distribution deals and opening new sales channels.
- Brand Building: Elevated GoPro’s brand into a household name synonymous with adventure and high-quality action photography.
- Financial Performance: Achieved robust revenue growth and profitability, even amidst competitive pressures.
- Content Ecosystem: Established GoPro as a content creation platform with user-generated content driving engagement and brand loyalty.
- Strategic Partnerships: Formed strategic alliances with influencers, athletes, and media companies, enhancing brand visibility and credibility.
- Community Engagement: Built a passionate community of users through social media and events, fostering brand advocacy and customer loyalty.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of GoPro (GPRO) is 42/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is GoPro (GPRO) stock a good buy?
Some of the top questions investors can have is GoPro (GPRO) stock a good buy or should I buy GoPro (GPRO) stock?
GoPro can be a compelling investment for several reasons. As a pioneer in action cameras, GoPro has established a strong brand synonymous with adventure and high-quality photography. The company’s ongoing innovation in camera technology, especially in the realm of rugged and compact designs, continues to attract enthusiasts and professionals alike. GoPro’s strategic expansion into new markets and its focus on digital content creation through user-generated content further enhance its appeal. Despite competitive pressures, GoPro’s ability to maintain brand loyalty and its potential for growth in the digital content and subscription services sectors make it an intriguing investment opportunity for those interested in consumer technology and media. However, potential investors should consider market dynamics, technological advancements, and competitive landscape risks when evaluating GoPro as an investment option.
—
To truly know if GoPro is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
If you found this stock review interesting, you may also like this review on AMD.