GoPro Inc (NASDAQ: GPRO) Will Not Be The Next Tech Giant

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GoPro Inc (NASDAQ: GPRO) has been one of the most hyped-up stocks of the year. Many investors claim that the company’s stock is headed towards the $100 mark within the next few weeks – a claim that is grounded in nothing but pure optimism.

These advocates for GoPro equate the company to the likes of Amazon (AMZN), Facebook (FB), Google (GOOG), and Netflix (NFLX), as if GoPro is nearly as groundbreaking as they were.

It is possible that GoPro could continue the amazing sales run it has been experiencing so far. However, there are reasons for being wrong to liken the camera company to the innovative tech geniuses that have paid off tremendously for their investors over the years.

Tesla-Motors-Logo

GoPro vs Tesla Motors (TSLA)

The first difference is the target market – the number of people who will own a car far exceeds the number of people who will purchase a tiny camera. Tesla clearly has a much larger market than GoPro does, and thus its peak earnings will outdo GoPro’s.

See Next Story: Real Reason Why Tesla Shares Dropped Last Week

The second is the innovation. Tesla capitalizes on a technology that they developed themselves and cannot be replicated easily. Its electric cars are a huge step forward for environmentally consciousness, and set the bar for electric vehicles. The innovation of its technology puts it far ahead of all other electric car makers in the market – the second best electric vehicle can only travel a fraction of the distance Tesla cars do, and it is still rather expensive.

GoPro, at its core, is nothing new. It simply repackaged digital photography technology that existed ten years ago. Add a dynamic branding strategy, and GoPro is born. The value of the brand and the market in which it runs is the issue in question, but when you boil it down to the basics, GoPro offers no new technology.

facebook-now-lets-you-edit-comments-0d1478af36Vs. Facebook (FB)

Facebook is a monopoly in the social media world, with over 1 billion users all over the world. Each user leaves a significant digital footprint (made up of pictures, text posts, etc) and is connected to other users through a network of relationships. This database of information is essentially priceless, and barriers to entry are high, as we saw with Google’s Google+.

By comparison, GoPro’s camera is nothing special, and is being challenged already by producers of low cost alternatives.

appleVs. Apple (AAPL)

Apple’s innovation started from the very beginning. The iPod was one of the first mass storage devices. Although other companies imitated the hardware, the ease and fluidity of the software was matchless.

Then the iPhone was a significant mover in the market. It drew users through by revolutionizing an existing necessity and kept them with its aesthetic software.

See Next Story: Apple’s iPhone 6 Launch May Save The Company

Additonally, the addressable market for phones is huge. Last year sales for smartphones reached over 1 billion per year. It is unlikely that cameras will reach that mark.

Vs. Google (GOOG) (GOOGL)

Google is a search engine giant with authority and market power that GoPro could never dream of having. There is no comparison.

All in all, GoPro could absolutely continue with strong growth in the near future. Will it reach the success of the tech giants listed above? Most likely no.

See Next Story: Vringo v. Google Patent Litigation Update

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  • Mi So

    What a stupid comparison!!

    “…the number of people who will own a car far exceeds the number of people who will purchase a tiny camera.”

    Whaaat?? Far more people own one or two GoPro cameras than people who own a Tesla!!

    The market for GoPro cameras is huge, cause almost anybody can use the camera and concerning that our lifes get more and more “lifestyle-action-packed” more and more people deserve great action shots.

    Next:

    “The second is the innovation. Tesla capitalizes on a technology that they developed themselves and cannot be replicated easily.”

    Partly right. Yes Tesla has an advance in innovation. Yes Tesla developed the technology by themselves. But Tesla also gave away it’s patents to let other manufactures take advantages of the new technology. Why is Tesla doing this? Because they are so “nice” and “open minded” to all the competitors? No, no and no. They are doing it because they have a huge dilemma: Their innovation is to innovative for today’s status quo. Tesla alone can not and will not bring electric cars to substitute normal cars. So it needs BIG help from the others…

    And what about GoPro? There technology is state-of-the-art and incomparable to other products. Normal cameras? Ohhh please…only someone who never used a GoPro can write that!!!

    GoPro has an outstanding performance, no other manufacturer could achieve so far.

    And yes…GoPro are hell expensive. But we buy them. We buy them, because you switch them on and you get the best action-movies you can get.

    Even more…with GoPro your “normal” jumps, hoops or gokart action footage look like those of the professional RedBull riders….and that is what Facebook/Twitter/YouTube Generation wants.

    And have you seen that more and more PROFESSIONAL Filmmakers are using GoPros for there Car Reports, Experiments, Myths bustings and so on…

    So please…go buy yourself a GoPro try it, compare it to other products and stop saying “It simply repackaged digital photography technology that existed ten years ago.”

    Last: At the moment GoPro has no “real” competition…as no one builds actually a better action cam. But Tesla Motors has HUGE competition!! All car manufacturer in the World are doing cars better and cheaper than TESLA. Okay they are not electric. But they are far better in the same price range.

    Do you take an S-Class, BMW 7 series, Audi A8 oder a Tesla Model S. It’s the same price. But luxury, comfort and endurance are faaar better from the competition. Tesla Model S is something for enthusiastic people. GoPro cameras are for everybody!

    And if you drove already a Model S (and some of the BMWs, Audis and Mercedes) you would never buy a Model S.

    And by the way…try to resell a Model S with some 70.000 – 100.000km. Good luck!

  • Christopher L Banacka

    And the number of guys with dicks surpasses the number of females with dicks. True story. Just like this story, but 100% pointless to say any of it.

  • Kelly Welker

    This story was obviously written by someone who has never actually used this camera. Nothing special????? Holy mackerel Batman!! I used this camera to scuba dive with. It’s compact, lightweight and even with every accessory I own, it still fits in a very small carrying case. The videos I have taken with this camera are amazing and the accessories make it very user friendly and the filters designed for the camera make the lighting new perfect without a strobe. Every time we go diving there is at least one person with some astronomically priced scuba diving camera. There are at 3 people with GoPros and many people wanting to know how we like it. No one ever asks the expensive dive camera guy how he likes his. They already know that those cameras are not priced for people who just want to take a few vacation photos underwater. Anytime we take a vacation, or do an activity that requires action or water, this camera goes with us. We love it and by George it is something special!!! And BTW, I would love to own a TESLA someday, as would a million other people, but the GoPro camera is affordable for at least 30% of the world’s consumer population. I dare to say that TESLA is only affordable to 1% of the same demographic. You might want to revisit your statistics.

  • Max Kissime

    I made a bear bet at StockBet.co that GoPro would drop on IPO day, but I lost. But now, the stock is dropping.

  • mike

    This is the dumbest analysis I ever read.
    Compare GoPro with iPhone. Apple didn’t invent anything at that time. It just repackaged, made an easy to use UI and excellent PR. This is exactly what GoPro has done. GoPro competitors are catching up of course but none has the level of features and quality and simply advance that GoPro has. Moreover, GoPro has a huge opportunity to make even better devices to enter lots of existing markets where quality is poor.

  • Bruce Black

    this article is so short-sighted and unfounded, I don’t even know where to begin. Bottom line, the person who wrote this is not an innovator and does not have a creative mind. Otherwise he’d see that just because go-pro is simply a camera today does not mean thats all it can EVER be. There is huge potential in being able to create social networks w/go-pro…they could build partnerships with just about EVERY sporting league as a means to promote…and by the way its small size could make it easier for them to move into the mobile device world at some point. Remember how everyone thought the iPhone was just an iPod as a phone?…see how that turned out.
    I am embarrased for the individual who wrote this.

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