|Bid||0.00 x 800|
|Ask||0.00 x 900|
|Day's Range||6.03 - 6.29|
|52 Week Range||4.00 - 7.60|
|Beta (3Y Monthly)||0.70|
|PE Ratio (TTM)||N/A|
|Earnings Date||May 9, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||6.25|
Could GoPro Continue to Beat Wall Street Estimates?(Continued from Prior Part)Return to revenue growth GoPro (GPRO) may no longer be a sinking ship. The company’s holiday sales in the last quarter left investors happy. Analysts expect
Could GoPro Continue to Beat Wall Street Estimates?(Continued from Prior Part)GoPro’s revenue expected to grow 6.20% this year GoPro (GPRO), which operates in a niche market, has seen flat revenue growth over the last few years. After the
Could GoPro Continue to Beat Wall Street Estimates?Revenue growth of 15.9%Consumer technology company GoPro (GPRO) is set to announce its first-quarter earnings results on May 2. Analysts expect the company’s sales to rise 15.9% YoY
Give credit where credit is due. Long-struggling GoPro (NASDAQ:GPRO) is making progress. And it's reflected in GPRO stock, which now has risen over 50% so far this year.Source: Shutterstock Of course, the problem is that GoPro stock closed 2018 only a few pennies off an all-time low. The big rally has only returned GPRO to where it traded at the beginning of November, ahead of yet another disappointing earnings report.That said, Q4 earnings -- and 2019 guidance -- were much stronger. GoPro is tracking toward profitability in 2019, if only on an adjusted basis. There is some good news here in a stock that I've long viewed with skepticism.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe question after the rally is whether that good news is already priced in. For the most part, it is. GoPro still has real questions -- and back above $6, GPRO stock simply doesn't look quite compelling enough. Case for GoPro StockAdmittedly, the outlook is brighter for GoPro. Q4 numbers were strong, with sales up over 12%, capping off a year when revenue dropped just 2.7%. Cost-cutting -- non-GAAP operating expenses dropped 17% in 2018, according to the Q4 call -- helped margins, allowing GoPro to revert to profitability on an adjusted EBITDA basis. * 7 High-Risk Stocks With Big Potential Rewards In 2019, revenue growth is expected to return, with the company guiding for a 5-8% increase in sales. And GoPro expects to move to non-GAAP net profitability, with EPS guidance of 20-40 cents. The big driver is an enormous expansion in adjusted gross margin, which is expected to rise from 32.8% in 2018 to 35-37% in 2019.That gross margin expansion, in particular, gives added reason for hope. It shows that GoPro is able to sell more cameras at higher prices and rely less on discounting to move units. GoPro has had some issues over the years overbuilding inventory, and then clearing that product through outlets like Best Buy (NYSE:BBY) at unattractive prices. At least at the moment, management doesn't expect a repeat in 2019. The Subscription BusinessThe other trend boosting margins is the company's growing subscription business. Those revenues have higher margins and are growing nicely, with paid subscriptions rising 50%+ last year.So there is a bull case here -- which truthfully hasn't always been the case. Revenue is growing, both domestically and overseas. On the Q4 call, CEO Nicholas Woodman cited improving market share figures in Europe and Asia. Both gross margin and operating margin - the latter thanks to better spending controls - should expand.And with GoPro now targeting profitability, valuation suddenly doesn't look so extreme. The midpoint of 2019 EPS guidance suggests a P/E multiple of 21x. That's not stunningly cheap, to be sure. But if GoPro is building a base for continued earnings growth, it's cheap enough. The Concerns with GPRO StockThat said, the big concern here is whether earnings growth is going to continue. Assuming the company meets 2019 guidance, operations will have improved significantly between 2017 and 2020.But what happens from there? Gross margin expansion is likely limited; CFO Brian McGee said long-term gross margin targets were 36-39%, pretty much in line with 2019 expectations. The company can't bring down opex every year without skimping on needed R&D and marketing spend. There's room for savings on interest expense if GoPro can pay its debt off a few years from now, but after-tax even that represents something like 10-12 cents in annual earnings per share. * 7 Stocks to Buy for Spring Season Growth From a growth standpoint, the easy work has been done. Post-2019 -- again, assuming guidance has been met -- GoPro simply has to grow sales. And the worry there is that the company really hasn't shown a consistent ability to do so. In fact, few hardware companies have.IP camera manufacturer Arlo Technologies (NYSE:ARLO) has plunged after its spin-off from NETGEAR (NASDAQ:NTGR). GoPro often is compared to Fitbit (NYSE:FIT), which went public around the same time, similarly soared, and then collapsed.Consumer hardware simply is a hugely difficult business. Sales depend essentially on the replacement cycle. That seems doubly true for GoPro, whose market is limited. 'Action cameras' simply have a fixed demographic. Consumers will age into that demographic -- and also age out. GPRO as a Revenue StoryBut at 20x+ earnings, with margin improvement opportunities limited, GPRO stock now becomes a revenue story. And that seems dicey. GoPro hasn't shown sales growth: 2019 revenue guidance suggests sales will be ~12% lower than they were five years earlier. Market growth is unlikely. It already has 90%+ share of Western markets, which means market share gains are limited as well.With profitability and some growth, GPRO likely can grind out some upside. A sale could drive returns - but there's no obvious acquirer, or any sign that Woodman (also the founder and controlling shareholder) is interested in being taken over. As a standalone, for real returns in GPRO stock, sales need to grow for several years to come. It's possible -- and it looks more possible now that it did a year ago or three years ago.'Possible' isn't enough to make GoPro stock compelling, however. Gains from here still requires consistent revenue growth. And for those investors who have followed the company since its IPO, consistency has been the one thing the company has never been able to provide.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post GoPro Is Making Progress, But GPRO Stock Still Doesn't Look Cheap appeared first on InvestorPlace.
SAN MATEO, Calif., April 18, 2019 /PRNewswire/ -- GoPro, Inc. (GPRO) today announced that it will release its financial results for the first quarter ended March 31, 2019, after the market closes on May 9, 2019. GoPro management will host a conference call and live webcast for analysts and investors on May 9, 2019 at 2 p.m. Pacific Time (5 p.m. Eastern Time) to discuss the Company's financial results. The webcast will be recorded and the recording will be available on GoPro's website approximately two hours after the call and for 90 days thereafter.
Yeti Holdings (NYSE:YETI) has been one of the best stocks of 2019. Already this year, Yeti Holdings stock has risen 113%. Among over 1,800 stocks with a current market capitalization over $2 billion, the performance of YETI stock ranks fourth.Only three biotechs have done better. The performance of Snap Inc (NYSE:SNAP) this year trails that of YETI stock by a tiny amount.Source: Goal Zero There are two primary reasons for the big gains of Yeti Holdings stock. The first is that, in retrospect, YETI stock simply was too cheap at the end of 2018. The company went public in October - after pulling a planned IPO earlier last year - which proved to be tough timing for a growth stock. Market-wide worries led YETI down as low as $12.40 in December.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 5 Wonderful REITs to Buy Today Secondly, Yeti has continued to grow nicely. Its fourth-quarter earnings, reported in February, beat expectations, leading Yeti Holdings stock higher. The company's 2019 adjusted earnings per share guidance of $0.99-$1.04 suggests that investors could have owned YETI in December for roughly 12 times its expected 2019 EPS. That multiple is far too conservative for a growth stock.With YETI stock now up over 150% from those lows, however, the question is whether investors are pricing in too much growth. Sales of the company's coolers are slowing, while its margins might be nearing a ceiling. Luke Lango made a strong case for YETI stock this week, assigning a price target in the high 30s. Given the risks facing the company, however, at $31.50, YETI might need to take a breather. Why YETI Stock Has DoubledThe main worry about YETI, going back to 2016, when it first filed for an IPO, is that the consumer-products business is a tough one. The growth of high-priced niche products stall out rather quickly. Investors no doubt had in mind the travails of fallen angels like GoPro (NASDAQ:GPRO) and Fitbit (NYSE:FIT). IP camera maker Arlo Technologies (NYSE:ARLO), which also launched an IPO in 2018, has plunged as well.But Yeti has eased those worries with its recent performance. In Q3, its revenue rose 7% year-over-year, while its adjusted net income climbed 81%. Its revenue growth accelerated sharply in Q4, as its sales rose an impressive 19% YoY. Its strong gross margin performance - including a massive 6.9 percentage point expansion YoY in Q4 - shows that the company isn't cutting prices to drive its sales. The increase in the company's gross margins indicates that its profit can rise going forward.Indeed, the company's 2019 guidance looks solid. YETI predicts that its sales will rise another 11.5%-13% in 2019. Sales of its coolers are slowing, but drinkware products now generate the majority of its sales. And Yeti's DTC (direct-to-consumer) channel is rapidly expanding; its DTC sales increased 48% last year, while its wholesale revenue rose just 10%. Since no middlemen are involved in DTC, sales made via that channel improve the company's margins.As a result, YETI's adjusted EPS is expected to rise 18%-24% in 2019, excluding the impact of an unusually low tax rate in 2018. Double-digit-percentage revenue growth and margin expansion suggest the company's growth outlook is intact. Combined, those trends show why the valuation of YETI stock in December was such an opportunity. Is YETI Stock Too Expensive?Of course, the valuation of Yeti Holdings stock now is very different. And there's a possibility YETI may have run too far. Analysts seem to believe so: the average Street price target on YETI stock now is $30.70, below the current price of $31.56. The Street may need some time to catch up, and another strong earnings report could cause analysts to raise their targets on Yeti Holdings stock. But for now, analysts think the end of the run is nearing.And there are fundamental reasons to be cautious about the shares. Yeti's own long-term targets suggest that its adjusted EBITDA margins will be 19%-22%. The midpoint of its 2019 guidance projects those margins will reach 19.6% this year. On the bottom line, growth is likely to slow.On the top line, meanwhile, there are still worries about market saturation. Any cyclical weakness could hit demand for Yeti's higher-priced products ; that was a key reason for the decline of YETI stock back in December.The rally of Yeti Holdings stock to this point has been well-deserved. The company has performed well, and investors who spotted the opportunity late last year have been amply rewarded. From here, however, advancing might be tougher for YETI. The company will grow further, but investors clearly have caught on to the story.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy for Spring Season Growth * This Is How You Beat Back a Bear Market * 7 Dental Stocks to Buy That Will Make You Smile Compare Brokers The post Why Yeti Holdings Stock Has Doubled in 2019 appeared first on InvestorPlace.
GoPro is bringing its no-questions-asked device replacement guarantee to 25more countries as part of its GoPro Plus subscription service, the companyannounced
GoPro Adds Damaged Camera Replacement to its Global Plus Subscription Service SAN MATEO, Calif. , April 15, 2019 /PRNewswire/ -- Wir geben dir Deckung. Nous assurons vos arrières. Te cubrimos las espaldas. ...
Sometimes, when a company goes public, there's a lot of hype surrounding that company, so the stock explodes higher following the initial public offering, or IPO. Then, that hype cools down, reality settles in, and the stock falls. * 10 Dividend Stocks to Dump and One to Embrace Source: Landscape Photo This pop-and-drop IPO dynamic happens time and time again. See GoPro (NASDAQ:GPRO), Fitbit (NYSE:FIT), or Shake Shack (NYSE:SHAK). Although that pattern does tend to repeat itself often, it isn't what's happening with shares of YETI (NYSE:YETI). The outdoors consumer products brand went public at $18 per share in late 2018. The IPO wasn't a huge success. Shares actually traded down on their first day on Wall Street. But YETI stock has been nothing but a huge success ever since, as back-to-back strong earnings reports have powered shares to above $30 today.This rally, unlike post-IPO rallies for peer outdoors consumer products brands GoPro and Fitbit, is for real. Yeti is a stable and healthy brand in a stable and healthy outdoors recreation market, with stable and healthy margins -- and stable and healthy go-forward growth catalysts. In other words, the whole growth narrative here is stable and healthy.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAt $30, stable and healthy is partially priced into YETI stock -- but not fully. Indeed, given the company's long-term growth potential, YETI stock isn't fully valued until the mid-to-upper $30's.Given this, I think the post-IPO rally in YETI stock has legs. This stock should close the year closer to $40 than $30. Stable & Healthy Is YETI's Calling CardIn short, YETI stock is supported by healthy and stable go-forward growth fundamentals, which support further gains in the stock.Let's look at the numbers. Depending on who you ask, the outdoors recreation market in the U.S. (including apparel, gear, and activities) measures somewhere north of $300 billion, and likely closer to $600 billion-plus. That market is growing anywhere between 5% and 10% per year, supported by a rise in the experience economy, active lifestyles and travel. Within that broad outdoors market, products account for roughly $120 billion in annual revenue. Revenues there are presumably rising at a healthy, high-single-digit growth rate, too.Within that industry, YETI is a small (less than $1 billion in revenues projected for 2019), but important (people need coolers and drink ware) and stable player (YETI is top dog in the cooler niche). From this perspective alone, assuming secular trends continue to power healthy revenue growth across the whole outdoors category for the foreseeable future, YETI projects as a healthy grower for the next several years, too.Further, YETI is launching new products to extend beyond its niche, pushing hard on the international front, and rapidly expanding its DTC business. All those initiatives imply potential market share expansion and addressable market growth.In other words, not only does YETI project as a healthy and stable grower for the next several years, but several go-forward catalysts imply that 10%-plus revenue growth is achievable for this company. If the company can grow at that rate, and margins improve with scale, then the rally in YETI stock is far from over. The Valuation Remains AttractiveEarnings next year are projected at roughly $1 per share. YETI stock changes hands at around $30. Thus, this stock trades at around 30 times forward earnings. That's a big multiple. The average consumer discretionary retail stock trades at 25 times forward earnings.But, YETI isn't your average consumer discretionary stock. Thanks to strong market positioning, potential share expansion catalysts and healthy tailwinds across the whole outdoors industry, YETI has clear visibility to 10%-plus revenue growth over the next several years. Meanwhile, the company's margin profile is depressed relative to other premium players, and 10%-plus revenue growth should allow for adequate opex leverage to close this gap.As such, YETI projects as a 10%-plus revenue grower over the next few years with healthy margin drivers. That combination leads me to believe that this company can do about $2.50 in earnings per share by 2025. Based on a sector-average 25 forward multiple, that implies a reasonable 2025 price target for YETI stock of over $60. Discounted back by 10% per year, that equates to a 2019 price target in the upper $30's. Bottom Line on YETI Stock * 10 Stocks That Are Screaming Buys Right Now Unlike other post-IPO rallies, this post-IPO rally in YETI stock has legs, mostly because the valuation remains reasonable and the fundamentals remain favorable. So long as both of those things remain true, the post-IPO rally in YETI stock will continue.As of this writing, Luke Lango was long YETI. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post The Big Rally In YETI Stock Is For Real appeared first on InvestorPlace.
Action camera maker GoPro Inc (NASDAQ: GPRO ) is scheduled to report first-quarter results in early May and Longbow's first-hand checks point to a "positive" report. The Analyst Longbow Research's ...
Fitbit Stock Has Been Volatile This Year—What Lies Ahead?Fitbit stock is up over 11% in 2019Shares of consumer tech company Fitbit (FIT) are up over 11% so far in 2019. From the start of this year to February 27, 2019, the stock rose 28%. It then
GoPro Inc NASDAQ/NGS:GPROView full report here! Summary * ETFs holding this stock are seeing positive inflows * Bearish sentiment is moderate Bearish sentimentShort interest | PositiveShort interest is moderate for GPRO with between 5 and 10% of shares outstanding currently on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding GPRO are favorable, with net inflows of $2.50 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Visit GoPro in Central Hall #C8008 to Experience HERO7 Black's HyperSmooth Video Stabilization -- Capture Incredibly Smooth Video Where No Gimbal Can Go Rolling Shutter Is Dead Thanks to HERO7 Black Enhanced ...
The action-camera firm’s stock was cut in half in 2018, but it is surging this year. Founder and CEO Woodman has sold $17.4 million of GoPro stock so far in 2019 after not selling any last year.
It's been a difficult few years for Ambarella (NASDAQ:AMBA). AMBA stock was one of 2015's biggest success stories. Between 2013 and 2015, AMBA stock went practically straight up, jumping from $15 to as much as $125.AMBA stock rode a huge wave of interest in action cameras. Every one of GoPro's (NASDAQ:GPRO) milestones sparked more interest in its key chip supplier, Ambarella. As we know, however, GoPro's boom went to bust as cheaper competition flooded the market, and Ambarella stock plunged in sympathy.Now, almost four years later, AMBA stock trades at just a third of the value that it had during that shining moment in 2015. AMBA hasn't given up, by any means. However, the transition from being a consumer-products play to a broader computer-vision stock has been messy, to say the least. Will Ambarella and Ambarella stock be able to get back on track in coming quarters?InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The Elite 8 Stocks to Buy for Massive Outperformance Declining Consumer RevenuesAs Ambarella CEO Fermi Wang pus it, the company needs to transform "from a pure video processing company to a computer vision company." It's not hard to see why Dr. Wang views this as a top priority. Just look at the company's holiday-quarter results.In its quarter that ended on Jan. 31, total revenues plunged nearly 30% year-over-year from $71 million to just $51 million. In fiscal 2018, revenues declined an equally jarring 23%. The company refers to its consumer-electronics business as "legacy," but unfortunately, the sector's revenues still make up a huge portion of the company's overall sales.Ambarella's sales of chips for next-gen products such as automotive cameras rose at a single-digit percentage rate, which didn't nearly offset the fall in the sales of chips used in drones, action cameras, security monitoring and other such relatively well-established consumer products.AMBA's guidance was also lousy, as the company predicted that its chips for consumer products would keep slumping, while its automotive business' revenue would be roughly flat . Even its chips for security products are poised to struggle in Q1, due to soft Chinese demand.As we saw with GoPro, Fitbit (NYSE:FIT) and numerous others, it's a challenge for hardware companies to maintain their leading market share. Unless you have a fantastic brand, cheaper knockoffs will take most of the market share. And, by and large, while Ambarella may have the best chips, "good enough" alternatives from competing companies are often used by the makers of cheaper products. That's why Ambarella's push into computer vision is so important. AMBA Stock: What Could Turn the TideAMBA spends about $30 million dollars per quarter, well over $100 million annually, on R&D. That's a very impressive sum, amounting to over a third of revenues and almost 10% of the market cap of AMBA stock annually.That sort of spending is necessary to stay ahead of the competition and develop next-generation products. AMBA is clearly making an all-out effort to build new product lines as its revenues from consumer-products makers fade.Ambarella is targeting two particularly promising markets. One of these is cameras that enable cars to "see;" those are necessary for any sort of self-driving vehicle. Although Ambarella already sells many chips for dash cams, chips for self-driving cars' cameras would be a much broader addressable market. Additionally, AMBA has launched various initiatives in the still-formative-but-potentially-huge- Internet-of-Things space.On top of that, Ambarella has a pristine balance sheet. The company has more than $10 per share in cash and almost no meaningful liabilities. That gives the company a ton of time to develop its new product lines. While the company is not profitable at the moment, it is not facing a cash crunch either. AMBA Stock: Other HeadwindsNot all the news is positive for Ambarella stock, though. One big risk posed by AMBA stock is that AMBA can be meaningfully hurt by a trade war. In FY18, AMBA earned nearly 80% of its revenue from Asia, though that includes a lot of sales to countries other than China.Still, as GoPro has accounted for a lower portion of Ambarella's sales, China is picking up the slack. GoPro only accounted for 12% of AMBA's revenues as of its last 10-K, and that suggests a good deal of its revenue will be vulnerable if the tariff battles continue. Additionally, 72% of Ambarella's workforce is located in Asia, and most of those employees are based in Taiwan and China.Switching gears, while the company has a fantastic balance sheet, its operating results have been rather disappointing. There is no getting around the fact that AMBA is no longer profitable and is struggling to even generate positive EBITDA. With its revenues from consumer-product makers set to fall for at least the next two to three years and no clear sign of when other revenue streams will pick up the pace, AMBA stock could be dead money for quite awhile. The Verdict on Ambarella StockAmbarella has a smart management team that has delivered in the past. Anyone who bought AMBA stock during its IPO is still up big, despite the disappointing performance of Ambarella stock in recent years. With a strong balance sheet and plenty of innovative R&D under way, Ambarella certainly has a good chance of turning things around.But that doesn't mean that Ambarella stock is guaranteed to do much of anything in 2019. It seems likely that the company's revenues will fall further this year and that it will continue posting losses.Until the company shows stabilization, let alone returns to generating growth and profits, it's hard to imagine that AMBA stock will rise much. AMBA is setting up to be a 2020 story, so there's no need to rush out to buy Ambarella stock today.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Genomic Testing Stocks That Can Ease the Sting of Theranos * 4 Pot Stocks That Could Be Fizzling Out * 7 Mid-Cap Growth Stocks That Could Be the Next Amazon or Netflix Compare Brokers The post Ambarella Stock Isn't Going Anywhere Until 2020 appeared first on InvestorPlace.
Read the full 3060-degree camera guide here. After 70-plus hours of researching over nearly three years, including days of hands-on testing for this update and two months using our main pick, we've found that the Insta360 One X is the best 360 camera. The specs on the One X read like a 360 camera wishlist: 5.7K resolution (the highest you can get in this price range), removable battery, on-camera display, Bluetooth, Wi-Fi, an app with advanced editing methods, and more.
Insta360 sells cameras that are able to film 360-degree video. The company raised $30 million and its CEO, JK Liu, told CNBC that it is now looking ahead to an initial public offering in 2020.
The Shenzhen-based maker of 360-degree cameras and virtual reality devices has raised $30 million from investors including Everest Venture Capital, MG Holdings and Huajin Capital, founder Liu Jingkang said. Longer term, the startup is pondering a listing but hasn’t made a final decision on venue, which could include China’s upcoming technology board or the existing Growth Enterprises Board in Shenzhen, the founder said.
[Editor's note: This story was previously published in November 2018. It has since been updated and republished.] When Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) started to give the public a glimpse of its developments in self-driving cars, the idea seemed out of this world. Alphabet's unit, Waymo, which stands for new way forward in mobility, is leading the way when it comes to the self-driving car trend.But since the search-engine giant derives much of its revenue from advertising, some investors might be more interested in stocks to invest in that are closer to being pure-plays in the space.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 15 Stocks That May Be Hurt by This Year's Big IPOs With that said, here are five stocks to buy that will play a key role in the future of self-driving cars. Some are similar to Alphabet, as not every stock on this list is a "pure" autonomous vehicle play, but each will undoubtedly be at the forefront of this rapidly growing trend in the months and years ahead. Tesla (TSLA)The first name on this list of stocks to invest in the trend of self-driving cars, Tesla (NASDAQ:TSLA), is one of the purest plays in the space. After all, TSLA's development in autonomous driving is as impressive as the lead it has in the electronic vehicle market.On Nov. 27, the company's CEO, Elon Musk, took to the wheel when the company announced Version 9 software updates. The most notable feature was Navigate on Autopilot.Navigate on Autopilot builds on the original Autopilot but does more: the car now suggests lane changes and, with driver supervision, it makes the lane changes. It also navigates highway interchanges and takes on-ramp/off-ramps as well as exits the highway.This technology is powered by a neural network, so the more data it gets, the better the code becomes and the less buggy Navigate on Autopilot gets.Tesla clearly offers the most advanced driver assist system on the market and the software will only get better as the company pushes out over the air (OTA) upgrades.TSLA stock does not come cheap: shares trade for 30 times analysts' consensus 2019 profit estimate. Debt-to-equity is 219 times, but the market's confidence in Elon Musk should not hinder a money raise, should Tesla need it. Ambarella (AMBA)Ambarella (NASDAQ:AMBA), whose past growth rates came from supplying camera chip technology to GoPro (NASDAQ:GPRO), reinvented itself by developing computer vision (CV1, CV2) chips for the ADAS market. However, the transition to the market of self-driving cars has not been without hiccups. In 2018, Ambarella's overall revenue dropped meaningfully year-over-year, and it's expected to do the same this year.The firm needs to spend its efforts on computer vision applications in the IP security, automotive and robotics AI markets. In the OEM automotive market, customers want a flexible solution that adds value. Since legacy automotive chips are vastly inferior -- unable to meet processing performance requirements, consuming more power than the desired limits and exceeding thermal constraints for camera -- Ambarella may have a moat.Ambarella's front-camera ADAS solution is a leading Tier 1 chip that it just introduced.in late January. In the Level 2 to Level 5 autonomous vehicle categories, the company offers a flexible open perception platform. * 15 Stocks That May Be Hurt by This Year's Big IPOs Nvidia (NVDA)When investors look at the stock charts for Nvidia (NASDAQ:NVDA), the first thing they'll notice is the drop in the NVDA stock price from over $280 down to around $170 as of Friday afternoon. The company's main business, GPUs for PCs, has weakened.Looking beyond the PC GPU market, Nvidia's strength in automotive suggests this company is poised to grow along with the self-driving car trend. In 2018,the company's revenue from automotive hit record levels.Autonomous vehicle production and development engagement are growing. Nvidia's next-generation AI-based cockpit infotainment systems should assure its growth rates hold in the automotive space.At GTC Europe, Nvidia announced that Volvo would include Nvidia's Drive AGX Xavier solution early in the 2020's. The solution will deliver on Level 2+ assisted driving. This is made possible by the integration of 360-degree surround perception and a driver monitoring system. General Motors (GM)Looking within the automotive sector, General Motors' (NYSE:GM) mass layoff announcement on Nov. 26 changed the strategic direction of the company.Even though traditional auto parts suppliers will suffer, as will GM staff getting let go, development for GM's self-driving car unit will probably accelerate. GM's Orion, Michigan plant will manufacture autonomous vehicles once they are mass-produced. The plant is a natural location for self-driving car production because it already manufactures electric vehicles.GM is making a big commitment to the self-driving trend. Between May 2018 and October 2018, GM and its self-driving car unit, Cruise, attracted $5 billion in investments. This amount pushed GM ahead of Alphabet's Waymo, Uber and Lyft. * 15 Stocks That May Be Hurt by This Year's Big IPOs GM's restructuring could distract the company from its self-driving car development. Glitches in the driverless cars could also delay the company from releasing it on the market. But if management recognizes the resources it needs to push the technology's development, GM has a chance of succeeding in the ADAS space. Aptiv (APTV)Aptiv PLC (NYSE:APTV) has earned a number of customer awards that recognized the firm's innovations in advanced safety, electrification and connectivity.It won a business award for its six highly scalable Level 2+ ADAS systems with a major North American OEM. The auto parts supplier is pivoting its business toward software, compute and integration solutions. This transition is playing out because Aptiv is booking new business.Aptiv, through its Mobility and Services Group, makes automated driving software. Its development in high-speed central compute platforms give the company a competitive edge. This fits nicely with its goal of having more automated and connected vehicle content.Given APTV's forward price-earnings ratio of 13.5, markets appear to have ignored this firm's growth potential in self-driving cars.If investors look beyond the macro challenges for APTV stock and put a valuation on the technology portion of the business, Aptiv is undervalued.As of this writing, Chris Lau did not own shares in any of the aforementioned securities, but was considering buying Aptiv in the next 72 hours. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy Today * 7 ETFs to Buy to Ride the Longevity Economy * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% Compare Brokers The post The 5 Best Stocks to Invest in Self-Driving Cars appeared first on InvestorPlace.
The history of GoPro (NASDAQ:GPRO) stock has become one of excitement, but it is not the kind of activity that a GoPro action camera can capture. Competition from device makers took GoPro stock from almost $100 per share into penny stock status.The release of a new action camera and a move to profitability have helped to take GPRO back above $6 per share. While a continued recovery for GoPro remains possible, investors will find it difficult to profit from GoPro stock under either of the two most likely scenarios for a rebound.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSmartphones initially could not replicate the quality and functionality of an action camera. For this reason, GoPro enjoyed initial success. However, as smartphones improved over time, consumers lost interest in standalone cameras, and GoPro's sales numbers dropped. Consequently, GoPro stock fell from a high of over $98 per share in 2014 to a low of $4 per share in a timespan of just over four years. * 15 Stocks Sitting on Huge Piles of Cash Today, GoPro stands as an $875 million company competing with the biggest names in tech. Despite this disadvantage, they have managed to turn profitable and produce what many see as the best action camera available. However, this leaves only two likely outcomes for GPRO, and both will make it difficult for investors to profit from GPRO stock. Is GPRO the Next Garmin?One option involves a hope that GPRO will become the Garmin (NASDAQ:GRMN) of the action camera space. In many respects, GoPro has followed in Garmin's footsteps. Garmin saw its stock plunge after the features of its GPS device found their way into smartphones.To stay in business, Garmin turned to niche GPS products. Often used for sporting purposes, these devices did not attract the interest of smartphone companies. In time, this turned GRMN stock around. Now, GoPro has begun to pursue a similar strategy.Those who see GPRO as the next Garmin have a reason for hope. In the action camera market, the new Hero7 stands out above its rivals. Moreover, the company's moves into video editing and content creation have also attracted attention. The Buyout CaseOn the financial front, the recent turn to profitability also appears impressive. Profits take the forward price-to-earnings (PE) ratio to about 20. Over the next five years, Wall Street forecast average profit increases of 10% per year for the next five years. Some might buy GoPro stock on these metrics alone.However, these multiples also open up the possibility of a different scenario--a buyout. Current valuations price the stock at a level where a firm such as Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) or Xiaomi (OTCMKTS:XIACF) could purchase the company.Products such as GoPro cameras tend to fare better with an ecosystem to facilitate device functionality and the sharing of media. All three of these companies can provide such an ecosystem. Risks for GoPro StockStill, despite these scenarios, the future for GPRO remains uncertain, and buying GoPro in hopes of either situation panning out is a questionable strategy.For one, the company's attempts to stay relevant have not always led to successes. For example, the company tried to add action cameras to drones, but the idea failed to take off. Such failures reduce the likelihood that GoPro stock will see a recovery like the one Garmin experienced.Moreover, buying a company in hopes of a buyout remains a tricky situation. Sure, they could announce a buyout tomorrow. However, prospective buyers could also hold out for more stock price declines in hopes that they could buy at a lowered price. Given that possibility, a further drop in the stock price is not out of the question. The Bottom LineWhile I expect GoPro products will stay on the market for the foreseeable future, it may not necessarily lead to a surge in GPRO. Given the benefits of an ecosystem, I see a buyout as the more likely scenario to occur.The more technology improves, the greater the need for product research funding and the need for an ecosystem. Although GoPro retains a product edge for now, larger and better-funded peers could catch up or surpass them in time.Garmin continues to deal with this issue as mega-cap competitors take an increasing interest in their product niches. For this reason, one has to assume the competitive threat would remain for GoPro as well. A buyout eliminates that worry. It would also provide funding for product improvements and an ecosystem for camera output.In either case, action photography enthusiasts will continue to benefit from GoPro products. Just don't expect that to pay off for holders of GPRO stock.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Retail Stocks Winning in 2019 and Beyond * The 10 Best Stocks to Buy for the Bull Market's Anniversary Compare Brokers The post There Isn't a Lot of Hope Left for People Investing in GoPro Stock appeared first on InvestorPlace.
You might assume that because I'm a Sony (NYSE:SNE) guy, I've never had any love for GoPro (NASDAQ:GPRO). For the record, I prefer GoPro's line of action-cameras; they practically invented the category. What I don't like is GPRO stock. Look at its price chart and you'll quickly see why.Source: Shutterstock This is why I pounded GoPro stock every chance I had. Despite fathering the action-camera segment, competitors quickly entered the arena. At first, that didn't bother management because it levered a strong brand. However, GPRO demonstrated its vulnerabilities when it couldn't gain traction with other businesses, such as drones. * 7 Best Fidelity Funds for 2019 But, last year, I had a small change of heart. After years of devastation in the markets, I felt that GPRO stock possibly had hit rock-bottom. As the adage states, the only direction from there is up. Therefore, I gave it a shot as one of 20 small-capitalization stocks with outsized potential.Of course, I had other arguments besides commonly heard anecdotes. Management significantly cut its workforce, which, on paper, boosts earnings. Additionally, the organization whittled down its business expenses and even research and development.InvestorPlace - Stock Market News, Stock Advice & Trading TipsJust as importantly, the camera-maker generated solid revenues across its price channels. In particular, I was impressed that it did so without any of the products cannibalizing each other.If you've been following the news on GPRO stock, you might think I made a fortuitous decision. Early last month, GoPro's CEO Nick Woodman predicted a return to profitability in 2019. Sounding like self-help guru Tony Robbins, Woodman proclaimed "GoPro's brand has never been stronger, our products never better."As Woodman is going to bat for his company, GoPro stock is up nearly 47% year-to-date. Is the worst finally over? It's Time to Go Away From GoPro StockLet me just share one more anecdote before I get into the facts. Personally, I'm considering buying multiple, top-of-the-line GPRO cameras. To get the in-car footage I'm seeking, Woodman is correct: nothing beats the GoPro brand or the products.From that sentiment alone, GPRO stock possibly appeals to speculators. Every time we watch YouTube videos, most of the sensational shots owe their existence to GoPro. Clearly, the company bridged the gap between professional media studios and talented, but underfunded amateurs.But, as I promised, let's now look at the facts. Back in 2014, The Verge reported that half of YouTube's viewership stats originate from smartphones and tablets. A few years later, the inevitable happened: smartphones have radically changed the way people "shoot and watch video."In other words, viewers appreciate the flashy stunts and outdoor footage that you can only get from action cameras. However, this is a niche category. Instead, social media and video-sharing platforms mostly focus on run-of-the-mill, mundane footage. The distinguishing factor is the content, not necessarily the footage.That segues into another problem for GoPro stock: competition. Early on, the company had to worry about copycats and low-priced rivals. Now, they face perhaps an untenable challenge from the likes of Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL).That's because smartphone manufacturers have integrated groundbreaking technologies into their products. I'm able to take incredible video with my iPhone X that was simply impossible for many older digital-SLR cameras. Nowadays, it's just redundant to have separate devices that only take photos and video.Plus, with reasonably-priced smartphone gimbals like the DJI Osmo, an action-camera is irrelevant for most consumers. The End of the Road for GPRO stockIf you take a look at the long-term revenue trend for GPRO stock, you'll notice sales have tilted negatively since late 2014/early 2015. Inevitably, the company laid off its workers and cut costs, even critical ones.But what this also shows is the death throes of an electronics firm suffering from commoditization. Stable action footage is no longer unique, and it can be actualized through relatively cheap mechanisms.Don't get me wrong: action-cameras have demand. Even point-and-shoot cameras apparently find millions of homes every year. But this niche demand is filled by big companies that win on combined volume with other profitable products. * 10 Top Pot Stocks 2019 Has to Offer GoPro is different. It's a small fish trying to win largely on a fringe product that is neither unique nor broadly relevant.I gave GPRO stock a chance because I thought it might surprise me. It did temporarily, but recent figures aren't good enough to overcome steep fundamental obstacles. The smart play here is to simply stay away.As of this writing, Josh Enomoto is long SNE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks Already Rewarding Shareholders In 2019 * The 10 Best-Performing ETFs This Year * 7 Stocks That Should Be Worried About a Data Dividend Compare Brokers The post GPRO Stock Suffers a Relevancy Problem appeared first on InvestorPlace.