PE is not 3 as they would lead you to believe. non-Gaap earnings is BS. You cannot have 3 Billion in sales, and have 3 Billion in net profits. That means profit margin is 100% with no expenses.
Chinese smartphone giant Xiaomi recently launched its first two Mi Drones at jaw-dropping prices. A 1080p model costs just 2,499 yuan ($380) while the 4K version costs 2,999 yuan ($460). Both devices sport three-axis gimbals and rely on a companion app as a remote control and viewfinder. Xiaomi's devices dramatically undercut comparable 4K drones on the market, which generally cost around $1,000.
Xiaomi claims that the Mi Drone's replaceable 5,100 mAh battery offers nearly half an hour of flight time on a single charge -- which is comparable to high-end drones like DJI Innovations' Phantom 4. Like DJI's drones, Xiaomi's Mi Drone features autonomous takeoff, landing, waypoint navigation, orbit, and return-to-home modes. Users can also place geofences to limit the drone's movement.
Bad news for GoPro
It's unclear how well the Mi Drone stacks up against DJI's market-leading Phantom devices, but it's clearly bad news for GoPro (NASDAQ:GPRO), which recently delayed the launch of its eagerly anticipated Karma drone to the holiday quarter.
The launch of the Mi Drone is yet another indication that Xiaomi has its sights set on GoPro. Earlier this month, Xiaomi started selling Yi Technology's Yi 4K Action Camera 2, which combines the hardware of GoPro's $500 Hero 4 Black with the touch LCD display of the $400 Hero 4 Silver for just $250. Yi Technology (in which Xiaomi is an investor) also recently partnered with Alphabet's (NASDAQ:GOOG) (NASDAQ:GOOGL) YouTube to create VR videos for its Jump platform. Prior to that announcement, GoPro had been YouTube's sole Jump partner.
Why GoPro's drone matters
GoPro hasn't launched any new premium devices since the much-maligned Hero 4 Session last summer. Since then, GoPro's quarterly sales have steadily declined, and sales fell nearly 50% annually last quarter. The company also discontinued its three low to mid-range devices (the Hero, Hero+, and Hero+ LCD) in April to convince customers to migrate to its three core devices
They have to start cutting expenses more or increase sales. Even a 1% profit margin is better than losing money per Quarter.
Trading 10% of the float every day is alot of day traders, bots, and swing traders.
Thats like Apple trading 550 million per day, or Bank Of America trading 1 Billion shares a day.
The only stock I remember in recent memory trading more on a percentage term was SUNE 20-40% on some days And look what happened to them.
As long as they can keep sales decent, they are still profitable even with 33 billion in debt and interest payments.
Might have been a very low offer way under current price. If someone made an offer for Gopro at $6 Nick Woodman would reject it too. Meanwhile they lost 120 million last quarter.
Because there are buyers that think 10 billion in profit this year is a good buy for a company that has a market cap of 9 billion
You must be a Newbie. Gap ups almost always fall back down to close the Gap.
Its better like today to start down a little or even and go up from there!