Investing in GoPro
With this in mind, we present you with all the information you need to know about a company that had a great boom in this environment. In this way, you will be able to decide how to invest in GoPro and be able to make a good decision, by means of a brief analysis of its stock price.
What is GoPro?
Developing a great service within the technology industry, GoPro is a high-definition camera manufacturing company. The company was founded in 2002 by Nick Woodman. Since then it has had a high acceptance by the public, due to its great product.
The cameras offered by GoPro have a very compact and original design, because they are specially designed to capture the practice of extreme games. This idea was revolutionary in the world of technology, because although there were already models with which a high resolution image was obtained. There was not yet a device that allowed to record oneself while doing some kind of sport.
Its headquarters are located in California, USA and its production developed throughout the country. Due to its marvelous popularity, the company’s shares managed to be listed on the stock exchange. And, thanks to the profits made from its sales, the value of GoPro’s stock increased by more than thirty percent. This made the idea of investing in the company an excellent option.
However, as early as 2016, this successful company had to delist from the stock exchange. Now, because its persistence and effectiveness are still noticed, the company’s listing is now on NASDAQ.
Why buy GoPro stock?
In its first years of production, investing in GoPro presupposed the acquisition of large financial benefits. Because the marketing strategies they used enabled the great achievement of acquiring a profit of more than three million dollars. The company’s shares were presented as precious pearls and attracted a large number of investors.
However, due to the failure of the models launched in 2016, the losses incurred were extremely significant. This was the cause of its exit from the stock market. For the value of the company’s shares dropped more than 10%, creating much distrust and fear to its investors. This failure intensified when doubts began to arise regarding its ability to increase its production and expansion.
However, even when this horrible scenario was hanging over the company, its product was still a favorite for extreme sportsmen. They recorded with GoPro cameras and uploaded their videos to their YouTube channels. This allowed for massive publicity.
Thanks to this, the company’s shares are now listed on NASDAQ, which is the second largest stock exchange in the United States.
Buying GoPro shares: Advantages
- GoPro has high volatility in its shares, which is a good opportunity for short term shareholders
- Because it is a company immersed in the technology industry, GoPro’s stock value increase is persistent opportunity
- The company’s shares are easy to acquire
- GoPro’s share price is extremely affordable.
Buying GoPro shares: Disadvantages
- Due to its history of losses, investing in GoPro is not currently the best long-term option.
- There is a persistent downward bias in the value of the company’s shares.
- Company’s losses are more regular than profits
- There is no beneficial dividend for investors than buying the company’s shares for the long term.
- The company’s decline is becoming more and more accentuated
Even if all of these negative aspects are present in GoPro stock. This does not mean that it is not a good opportunity for a short-term investment. Because there is the possibility of trading GoPro shares by using a reliable broker. This guarantees some financial return on a short-term investment.
If you want to buy shares of the company we recommend that you use one of the best and most reliable brokers available online. With the use of this tool, the investment process is simplified to the click of a button. This excellent broker is eToro, which has a great rating according to the experience of many investors.
GoPro investment tips
The reason why a person decides to invest in a company is because it presents the necessary characteristics for the investor’s intentions and needs. Therefore, before investing in GoPro we recommend that you perform a thorough analysis of the pros and cons that may cause this action.
Although there is certainly a history of financial failures that can scare off any negotiator. This is not to say that at some point in time, this company will not regain momentum and establish stability in its financial management.
We recommend that you do some research on how much a GoPro share is worth in the market. It is also important that, before investing, you are able to identify the rate at which the company’s stock is moving in value. In case this is your first investment, it is a good idea to seek the experience of other investors who have entrusted GoPro with their finances.