Olga Ivanova
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Olga Ivanova in Apex Traiders,

GoPro: Ultraunderestimating and good opportunities

After a short-term collapse of the US indices GoPro turned out to be in the outside in spite of good financial performance and practically monopolistic position in the market. The problem of the company which is selling mainly action cameras is that investors consider thecompany to be unable to compete with manufacturers of smartphones and predict a fall in sales. However, our position is that despite the improvement of quality of photos and video on smartphones, they still are still smartphones. The essence of action cameras is to take pictures of extreme sports from the personal view, and therefore sales GoPro should not fall significantly. Moreover, the company only gets to its feet and has a lot of opportunities.

The current situation with a price per share explains the future expectations of investors of increase of sales due to the beginning of winter season (the cameras made by the company are perfect for use in winter extreme sports).

Source: Google Finance

The decrease in price per share up approximately to 23% makes GoPro’s shares a valuable asset to buy. As for the other financials, Revenue increased 43.0% year over year to $400.3 million. Combined EMEA and APAC sales up over 175% year-over-year. Shipped 1.6 million capture devices in Q3'15, up 46% year-over-year; 17.9 million cumulative devices shipped year-over-year. Gross margin of 46.8% increased 230 bps year-over-year. Earnings per share of $0.25 up from $0.12 in Q3 2014 and adjusted EBITDA increased 57% year-over-year to $56.7 million.