GoPro Inc (NASDAQ:GPRO) has had a rough time in the market for some time now. However, there are still plenty of investors holding on, waiting for that Hail Mary that will save this company. Nonetheless, even if you’re hoping for the game winning play, you’re probably wondering if it’s time to cut your losses and move on. In my opinion, the answer is yes. Today, we’ll talk about what the company has going for it, what it’s got going against it, and why I believe that if you haven’t cut your losses already, you can’t do it fast enough!
What GPRO Has Going For It
There’s no denying the fact that GoPro Inc (NASDAQ:GPRO) makes some pretty incredible cameras. Being the first on the field in the game of extreme action cameras is a feat that only this company has or ever will accomplish. To be honest, I love the cameras. I even own a Hero 4 of my own. I use it when I kayak, hike with the dogs, and more. Like most people that have one of these cameras, I love it. So, what the company does having going for it is the fact that it has a great product.
What The Company Has Going Against It
The truth is that having a great product isn’t the only requirement of building a great company. Unfortunately, there are two big factors weighing against the company that will likely bring GPRO to the penny category one day. So, what are the issues?
– Competition – GoPro did great in the beginning. They pioneered an entirely new industry and had the only product that fit within the category. However, over the years, things have changed. Today, there are several competitors in the industry that offer comparable technology at an incredibly low price in comparison to what GPRO offers. Now, the company has moved into the drone industry with a drone that is priced higher than the industry leader in that segment. The reality is that as more and more competition comes into play in the GoPro game plan, we’re seeing more and more flaws in their strategy.
– Marketing – On top of the fact that with both of their products, there are comparable products at lower prices, GoPro just isn’t good at marketing. They’ve never really done much when it came to airing commercials and getting their products in the faces of those who will buy them. Unfortunately, this is a major issue!
The Bottom Line Is That It’s Time To Abandon This Sinking Ship
While the captain may go down with the ship, the shareholders don’t have to. You can abandon it! At the end of the day, GoPro has a great product. However, if the company never figures out how to properly market that product, well, at the end of the day, they have nothing. Throughout the years, GoPro Inc (NASDAQ:GPRO) has proven time and time again that as new competition comes onto the field, they don’t have what it takes to maintain premium brand pricing. However, they continue to require it. As a result, the company is baking a recipe for disaster!
What Do You Think?
Where do you think GPRO is headed moving forward? Join the discussion in the comments below!
Note: This article was written by Joshua Rodriguez, owner and founder of CNA Finance. If you would like to connect with Joshua, you can do so by emailing him at CNAFinanceHelp@gmail.com!