The company GoPro has been providing a very popular product for more than a decade. What started as a simple idea of being able to take pictures of yourself doing activities has transformed over the years into a variety of high definition cameras that are compact and wearable. However there could be danger looming in the air for those who think that GoPro is worth an investment.
A GoPro is a small square camera. This camera comes with a hard case that is airtight and waterproof, also on the case is an attachment for different kinds of mounts. The camera was designed to be taken anywhere and to take high quality images as well as videos.
GoPro was originally started in 2002 by Nick Woodman. It was two years before the company sold its first product, which was only a simple camera compared to the technology that GoPro considers standard in its cameras today.
With the announcement of a new product coming out, GoPro is on the rise. This is parallel to Apple and its announcement of new products including the iPhone 6. Before anything had been released by Apple, its stock prices rose steadily for months. Prior to rising a total of 34 percent, GoPro has imitated this trend but on a much more radical level. Its stock price has risen well over 70 percent since the announcement by Woodman about a new product in the works.
However, this is not a great sign for investors. The company is already being overvalued and if investors realize that this company’s stock is overvalued, it will cause a massive correction.
However, there is one thing that some investors are hoping will come to fruition. GoPro is hoping to establish its own service that is similar to YouTube. The service will allow people to post their own videos and as well as watch others’ videos. If the company can establish this service and make it successful, it could pay off exponentially. However, these websites can take years to develop and even longer to get enough user content to turn a profit. That makes this a huge gamble for investors looking into the company.
Overall GoPro has a solid foundation, but the stock market has set this company up for a very interesting future.