Why did GPRO fail.

Jamie J. · Mar 10, 2016

I think that the situation is obvious, it is caused by failed financial performance, sales decrease by more than 15%, and finally its product loses demand in the market. Is that enough?

felixbocharov · Mar 10, 2016

Jamie J. said:
I think that the situation is obvious, it is caused by failed financial performance, sales decrease by more than 15%, and finally its product loses demand in the market. Is that enough?

That's what I'm saying, but some people here prefer to deny the reality.

felixbocharov · Mar 10, 2016

OptionGuru said:
2 years is still recent for an IPO.

Do you consider the low stock price to be an indication of failure?

Ask the people who bought the stock after the IPO, whether they consider it as a failure or not. Maybe for Nick Woodman it is a success, but here, generally, we are talking about the investors.

felixbocharov · Mar 10, 2016

m1nt said:
1. For the same reasons that Fitbit will be irrelevant in 3 years or less: technology is a commodity that is ultimately dominated by generic rivals offering the same or better performance at a fraction of the original price. The price and profit margins start tanking as soon as a new product drops. It seems that only Steve Jobs could make technology that was cool for a long time and could sell at a premium to the mass market.
2. No one cared about the social networking capabilities of GPRO (?).
3. Camera-on-a-stick isn't a great revolutionary idea. We are essentially talking about the pop cultural phenomenon of "selfies:" a fad that is fading. the picture quality of camera-on-a-stick is headache inducing (my opinion).
4. Drones weren't the second coming for GPRO.
5. GPRO likes to link itself with "core" extreme sports. The original GPRO consumers (5 years ago?) were mostly kooks with more money than skills. Weekend warriors and tweens from wealthy neighborhoods decked out in tennis attire would push their razor scooters and longboard skateboards and catch all of the exciting action on their GPRO helmet mounted cam. Most of the real extreme athletes, however, are broke from my experience. The older ones with money don't really care about footage quality or the latest GPRO model.

Very nice post, thank you for sharing your thoughts here. I agree with each and every word above. By the way the selfie fad is really fading.

OptionGuru · Mar 10, 2016

felixbocharov said:
Ask the people who bought the stock after the IPO, whether they consider it as a failure or not. Maybe for Nick Woodman it is a success, but here, generally, we are talking about the investors.

The 2-year chart shows lots of opportunity to be long and/or short - the only losers would be the buy-and-hold crowd.

felixbocharov · Mar 10, 2016

zdreg said:
both mint and garrettkimmel, in posts above, are showing what makes for a market, a buyer and a seller. mint will go short and gk will go long. let's see if either one has the courage of their convictions and takes action.

Right now shorting GPRO is probably the bad idea even for people who actually think that the company is bad. So what you are proposing does not make any sense.

zdreg · Mar 10, 2016

felixbocharov said:
Right now shorting GPRO is probably the bad idea even for people who actually think that the company is bad. So what you are proposing does not make any sense.[

1.I did not say that the transaction had to be done immediately.
2. to say it is does not many ANY sense is stretching it quite a
bit. you have no idea how another person enters their position. they may average in or they may take a position with a wide stop etc.

zdreg · Mar 10, 2016

zdreg said:
1.I did not say that the transaction had to be done immediately.
2. to say it is does not many ANY sense is stretching it quite a
bit. you have no idea how another person enters their position. they may average in or they may take a position with a wide stop etc.

3. if you have an expertise on entry points please share it.
4. a bad idea short is a good idea long.

felixbocharov · Mar 11, 2016

zdreg said:
3. if you have an expertise on entry points please share it.
4. a bad idea short is a good idea long.

basically, you ideas are quite blurred, if you are proposing something please be more specific.
a bad idea short is a good idea long - is it always like this? Just think about the possible arguments before you enter really stupid ideas.
specific

Jamie J. · Mar 11, 2016

But at the same time, everything could be changed for the better. I mean the emergence of new products. The Karma drone is extensively discussed product recently. Heard something?