GoPro Inc. (NASDAQ:GPRO) looks to have had one of the best Q4 in the recent past in terms of sales as a number of retail stores reportedly ran out of products as demand hit record highs especially on high-end camera models. During an interview on CNBC, Pacific Crest Research analyst, Brad Erickson, reiterated that the impressive holiday sales clearly indicate that competitors are not chipping market share away from GoPro.
“We think GoPro has had an extremely successful Q4 holiday with several outages sited across the country and then lower inventory levels on a month over month basis which is particularly encouraging exiting the quarter here,” said Mr. Erickson.
Pacific Crest has already raised its estimates for GoPro with a neutral rating at the back of increasing share price target to $73 on the belief that the company commands a competitive advantage in the market. The neutral rating according to Erickson is based on the fact that GoPro Inc. (NASDAQ:GPRO)’s valuation in the market is considered very rich.
Wall Street has always remained skeptical about GoPro prospects on the fact that it has a technology that everyone else in the industry can copy. Creation of a superior marketing platform according to Brian Kelly is highly important as well as a unique ecosystem if the company is to maintain its rich valuation in the market.
Jon Najarian, on the other hand, remains skeptical about GoPro Inc. (NASDAQ:GPRO)’s prospects going forward reiterating that Ambarella remains the better option at the current valuation. Ambarella Inc. (NASDAQ:AMBA) has remained a key beneficiary of GoPro’s improved sales as it makes chips used for making the cameras.
“GoPro Inc. (NASDAQ:GPRO) what I worry about is not those units sold, I worry about this idea of them being a media company. I think people give them far too much credit for being a YouTube sought of thing other than just on somebody else platform like Google’s with YouTube. I think they are given too much credit there that’s where I think they fall down and miss,” said Mr. Najarian.
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