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GoPro

GPRO · NASDAQ

$1.10+$0.06 (+5.77%)TodayMarket closed ·
Prev close $1.04

GPRO analyst rating

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The case for and against

Updated Nov 28, 2024

Bull case

GoPro Inc has demonstrated a significant shift towards retail channels, resulting in retail revenue rising to 55% of total revenue in Q1:24, an increase from 46% in Q4:22, while subscription revenue grew by 16% year-over-year to $25 million, indicating a healthy contribution from direct-to-consumer sales. The company's guidance for 2024 anticipates a 10% increase in unit growth compared to 2023, alongside improving gross margins projected to rise to 37% from 32%, which signals operational efficiency and positive market conditions. Additionally, with sell-through increasing by 29% year-over-year, GoPro is positioned to capture growth opportunities in established markets like Asia and Europe.

Bear case

GoPro Inc. experienced a revenue decline of 3.5% year-over-year, totaling $294 million, and a significant decrease in direct-to-consumer hardware sales, which fell by 50% year-over-year to $38.5 million. Additionally, the company faced challenges with a decreasing number of new subscriber additions throughout 2023, indicating potential issues with customer retention and market demand. The shift in sales towards their latest entry-level product, which carries higher costs, negatively impacted gross margins and further reflects the financial pressures facing the company.

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