Seeking Alpha

GoPro confidentially files for IPO

  • GoPro, maker of a line of wearable sports/action cameras that have achieved cult status with many of their users, has confidentially filed for an IPO.
  • In preparation for its IPO, GoPro recently hired Qualcomm exec Jack Lazar to be its CFO. 14 months ago, the company sold an 8.9% stake to giant contract manufacturer Foxconn at a $2.25B valuation.
  • Ambarella (AMBA +3.8%) whose video-processing SoCs power GoPro's cameras, are up strongly today after selling off earlier this week.
Comments (26)
  • These guys are Kodak in a hard plastic box... really?
    7 Feb, 11:06 AM Reply Like
  • No, these guys have a GOOD product. I see them all over the place at the lake. Everyone has them attached to PWC's and boats.
    7 Feb, 03:29 PM Reply Like
  • TIME TO COVER ANY AMBA SHORTS
    7 Feb, 11:18 AM Reply Like
  • These are all over the ski resorts near me.
    7 Feb, 01:16 PM Reply Like
  • Lots of competition in this field (wearable video cameras), Sony, Garmin, Panasonic and JVC come to mind immediately. I'm sure there are more, like this one: http://bit.ly/1bDD6Fi .
    7 Feb, 02:36 PM Reply Like
  • GoPro is best in the industry. Even TV studios use their cameras on a regular basis.
    9 Feb, 01:47 AM Reply Like
  • If you know anything about skiing/mountain biking/extremesports you'll know that Go Pro is the go to brand. I know nothing about their business model, but I know that they're doing something right, their use has exploded over the last few years. Everyone has one of these on the ski/bike hills these days. I know loads of friends who use them and they have great looking displays in every ski/bike shop you visit. I know not one person who uses a Sony, Garmin, Panasonic or JVC. I've never even seen anyone with those brands.
    7 Feb, 02:55 PM Reply Like
  • Ok, I guess based on your statement, Sony, Garmin, etc. are just making those to have them sit on the shelves. You will be investing in Go Pro based on their ability to maintain their successful branding. Good luck to you.
    7 Feb, 03:17 PM Reply Like
  • I'll give Garmin credit with their VIRB camera but I don't think they can even come close to half a billion in annual sales (not including GPS). The outdoor world really is dominated by Go Pro. I have friends who surf in CA and use it and when I'm home in VT I see it all over ski resorts. Keep in mind this is a company whose vision is concentrated around this one product so their entire effort goes into the quality and growth. No distractions
    7 Feb, 03:34 PM Reply Like
  • GoPro's branding is second to none. I know those other companies are making products, but there is virtually no competition in the mind of GoPro's target market.
    7 Feb, 03:34 PM Reply Like
  • My kids love their GoPro. They use it for everything. Earlier comments are correct in that there is GoPro and everyone else.

     

    That said I'm not going to touch the IPO at a $2.2B valuation. The main reason. There product is so good I have no desire/need to buy a new one. Same with my friends.

     

    Smart move to IPO now.
    7 Feb, 03:50 PM Reply Like
  • What 2.2 billion valuation? Up above it says that Foxconn paid 2.2 billion for only an 8.9 percent stake in the company. At what value is the remaining 91.1 percent worth?

     

    A billion dollars ain't what it used to be.
    7 Feb, 05:50 PM Reply Like
  • It said Foxconn bought 8.9% stake at a company valuation of 2.2 billion, implying a $200 million investment by Foxconn.
    8 Feb, 11:22 AM Reply Like
  • The same was said about the iPod, then the iPhone, then the iPad - lighter, better, faster, higher-def, more flexible, compatible, etc. The idea that the GoPro product your kids have today will be the same GoPro product they have 2, 5, and 10 years from now seems very unlikely (and short sighted).

     

    Some may laugh at the comparison to Apple, but consumers of the product know first hand it is top rate, and their loyalty to the brand is akin to a blood relative.
    8 Feb, 12:38 PM Reply Like
  • Hey, I didn't say I was intending to invest in Go Pro, though I might do a bit more research having heard this news. As I said I know nothing of their business model or fair valuation. I was just offering some on the ground observation on the product. They've obviously got a pretty good product/niche going on. If you think Sony/Garmin/Panasonic or JVC is a better play then good luck to you. My point is that I don't think you'll see these brands in the outdoor/extreme sports field anytime soon, Go Pro dominates here. That's what they do and they clearly do it well. Seems like others would agree from comments below.
    8 Feb, 01:22 PM Reply Like
  • Maybe AE has one of those brands
    7 Feb, 03:09 PM Reply Like
  • None of the competition is nearly as good as GoPro. Garmin's video supplier is getting out of the business, as is TXN saying it doesn't justify the investment.There's more to GoPro. They're doing a billion dollars of business, AMBA is doing 150 million and a lot of that is surveillance related.
    7 Feb, 03:22 PM Reply Like
  • They have complete market dominance when it comes to sports/action cameras
    7 Feb, 05:30 PM Reply Like
  • Obviously selling an entire position based on a shorters article on AMBA was wrong.

     

    Long AMBA
    7 Feb, 07:57 PM Reply Like
  • I see the branding in every surf and Scuba shop i walk into as well. do some on the ground homework on these guys, and you'll find them at camping stores as well. they have an incredible branding and penetration into certain niche marketplaces.
    8 Feb, 08:17 AM Reply Like
  • Just a question, Is GoPro joined at the hip with AMBA or can that change?
    8 Feb, 12:50 PM Reply Like
  • AMBA supplies the highest quality products for GoPro. Excellent business relationship.
    8 Feb, 02:59 PM Reply Like
  • If you would like my positive thoughts on GoPro and its key supplier AMBA, please give me your email address.
    10 Feb, 09:37 AM Reply Like
  • Freackyguy666@yahoo.com

     

    Does AMBA hold any equity in GOPRO?
    12 Feb, 02:23 PM Reply Like
  • lkaymay14@yahoo.com thanks
    16 Feb, 04:34 PM Reply Like
  • When is the IPO???
    28 Mar, 09:44 AM Reply Like
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