r/valueinvesting
Why GoPro fell apart. Blame the owner
GoPro fell from an $11B giant to a $150M penny stock due to poor management, lack of innovation, and fierce competition.
- Market share plummeted from 75% to 20% due to lack of innovation and agile competitors like DJI and Insta360.
- Cash reserves dropped to $50M with 20% layoffs, and auditors warn of substantial doubt regarding its ability to continue as a going concern.
- Market cap collapsed from $11 billion to just $150 million due to poor management decisions.
GoPro is the most honest example of a company killing itself through its own managment decisions. It dominated an industry it had created, but after the owner cashed out he stopped trying and the company fell into disrepair. The $11 billion giant is now worth just $150 million.
Its market share fell from 75% to just 20%, as competitors like DJI and Insta360 entered the market with real innovation.
The companies cash reserves are down to $50 million and it has laid off another 20% of its remaining staff in a desperate restructuring attempt. Its auditor has warned there is "substantial doubt" about GoPro's ability to continue operating over the next year.
In the words of the analysis conclusion:
"Now, a pioneer that once captured the world's imagination was brought down by its own refusal to innovate, allowing more agile competitors to seize the market. From an $11 bn giant, GoPro is now a penny stock fighting for survival."
Main reference:
Other sources:
Let's not kid ourselves, tho. A big part of that 'somehow' was phone cameras. I have two GoPros, but I basically stopped using them because it's another thing I have to carry somewhere, and my phone case is rugged, my phone's camera is nearly as good, and I always have it anyway.
This category is and has been shrinking, and that's a big part of the story here.
There are still use cases. Snorkeling, diving, in-car film/recording in tight spaces, action camera, etc. usually the folks recording or doing tv know camera settings well enough. Think of the car and coffee show with Jerry Seinfeld. I wouldn’t dare use my phone snorkeling. Camera is better with sensors
Followed the Kodak strategy.
What do you think is going to happen to openai and chatgpt now lol
Sounds like Nokia.
What?
People use action cams as part of actual paid work all the time. GoPro wasn't riding on selling cameras to a bunch of people going on vacation.
What are the latest innovations? A slightly better battery? Some more megapixels ?
For months I've occasionally poked around, as I've had GoPros several times and remember when GoPro commercials would be fanned over at the lunch table in school. Introduced me to Glitch Mob.
https://www.youtube.com/watch?v=gOLY7bjCTTE
but man. I genuinely can't find any hopium for them to turn around.
In the end, the best brands in the category are Chinese . And they have much more advanced technology than GoPro.
"Why GoPro fell apart. Blame PE" --This thread if they were acquired instead.
And now crushed further by SaaSpocalypse..
I like my Insta360 a lot, fwiw
I had a ton of fun using insta360 too, specifically the One X2
But that did require quite a bit more editing since it's an actual 360° camera
I'm currently using a dji Osmo nano
Super tiny camera, can mount it anywhere, and pretty great image quality for the size
Cool! I'll look into it!