Lots of people in 2014 decided, “You know what, I know GoPro’s are a really trendy item with a lot of hype this Christmas. I’m sure there are enough extreme mountain bikers, great white shark riders, and skydivers in this world to provide a sustainable user base. Paying up to almost $90 a share for a company with one product that doesn’t do much more than the video camera on my cellphone seems like a great idea.”
Anyways, people do stupid things around Christmas. Everyday we share the road with people that thought a collection of Beanie Babies could put their kids through college. I’m sure there are parents in therapy that paid a 300% markup in a dark alley behind Toys R’Us for a Tickle Me Elmo several years ago. Free markets have winners and losers, and every loser holds out a glimmer of hope that having paid the price of a car for a Princess Diana Beanie Baby will eventually be seen on par with buying Microsoft or Starbucks stock at the IPO … I don’t blame anyone who bought at 2014’s peak to beat the drum in hopes of eventually turning a profit.
From my perspective I don’t see much to get excited about in GoPro long term. The company sells products that can easily lose interest with fickle consumers and has done a horrible job giving consumers reasons to upgrade. The stock may go up or down a bit depending on how it’s upcoming drone does but unless they absolutely hit it out of the park it’ll be tough to recreate that beanie baby frenzy that saw the stock trade near $90.
As always, all the legal jargon about invest at your own risk and make decisions on your own applies here. Don’t sue me for anything and if you like GoPro or your name is Nick Woodman don’t try to fight me…