GoPro: Don't Fear This Dip

Jul. 14, 2022 2:46 AM ETGoPro, Inc. (GPRO) StockGPRO6 Comments
Gary Alexander
31.2K Followers

Summary

  • Shares of GoPro have dropped 50% this year, with losses building up after the company's recent Q1 earnings release.
  • At issue is weak Q2 revenue guidance, even though the company is predicting unit sell-through in line with historical seasonality.
  • This implies that the company may have a backlog of shipments to boost revenue in Q3 and onward.
  • Gross margins are high, helped by a growing subscription revenue mix. Profitability is starting to look like GoPro's key appeal.
GoPro Hero 10 action camera mounted on a paddleboard or kayak

marekuliasz

To really beat the market during this volatile time, investors often have to look in very unlikely places. In the case of GoPro (NASDAQ:GPRO), most investors probably have written the company off as a fad hardware company that can't

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This article was written by

31.2K Followers
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of GPRO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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