GoPro continues selloff after Barron's takes aim


"As accessory makers perfect wearable mounts for smartphones—and they inevitably will—it becomes hard to justify GoPro's (GPRO -4.2%) competitive advantage, particularly at 83 times earnings," says Barron's in a bearish weekend column.

The paper notes the damage done to the point-and-shoot camera market by smartphones, and argues Cisco's failed 2009 acquisition of digital camcorder maker Flip serves as a "cautionary tale."

Worth noting: It would take a lot more than just wearable mounts for a smartphone-based action camera solution to match GoPro's feature set and accessory ecosystem.

Shares are now down 25% from a July 1 peak of $49.90, but still up 30% from an opening trade of $28.65.

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Comments (6)
  • Upbeat
    , contributor
    Comments (710) | Send Message
     
    I think you can usually build into the pattern of an IPO the chances that after it moves up then begins to subside Barron's will come out with a negative piece.
    14 Jul 2014, 11:26 AM Reply Like
  • vikramnjnjjdjnd
    , contributor
    Comments (1444) | Send Message
     
    I thought the stock could go higher and higher forever? Back to $28 shortly.
    14 Jul 2014, 12:12 PM Reply Like
  • jamey.castro
    , contributor
    Comments (52) | Send Message
     
    ????
    14 Jul 2014, 12:18 PM Reply Like
  • feelingthepulse
    , contributor
    Comments (3) | Send Message
     
    I'm sure Barron's also predicted Apple's demise back in the early mid 90's.
    14 Jul 2014, 01:41 PM Reply Like
  • vikramnjnjjdjnd
    , contributor
    Comments (1444) | Send Message
     
    How come the bulls of gopro are very silent?
    14 Jul 2014, 11:06 PM Reply Like
  • Joe Albano
    , contributor
    Comments (1367) | Send Message
     
    We're too busy thinking before we speak and too busy putting our money where our mouth is...

     

    http://seekingalpha.co...
    15 Jul 2014, 09:45 AM Reply Like
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