Nasdaq, for example, has GoPro’s 12-month price target consensus among sell-side analysts at $71 per share. Eule calls the company’s point-of-view cameras a “one-product wonder” and compares them to BlackBerry smartphones that were once all the rage.
Shares of GoPro (GPRO – Get Report) were falling 6.4% to $32.90 in morning trading Monday following an article about the action camera maker in Barron’s magazine. Analysts have said that this is due to shareholders feeling “skittish” about the firm’s ability to fend off big name rivals like Apple. When the new iPhone camera features were introduced, shares of GoPro fell almost 10% in the trading session that followed. “History hasn’t been kind to one-product wonders like GoPro, which now dominates the market for video cameras”.
As examples, Zino cited a GoPro-camera-equipped quadrotor helicopter slated for release next year, as well as initiatives to build an entertainment arm out of user-generated content and professionally produced videos shot with GoPro products. Barron’s highlights that investors are well aware of this considering that in the past nine months, shares of GoPro have declined in the light of Apple-related news. The company did not comment to Barron’s on its report. Back in January, Apple obtained a patent for an action camera to compete with the GoPro platform, leaving many waiting to update their GoPro systems.