GoPro Share Price Forecast March 2022 – Time to Buy GPRO?
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Shares of American technology company GoPro (NASDAQ: GPRO) are in the red today, after closing at $8.24 as of March 23rd (19:12 EDT). GoPro Shares had initially lost 90% of its value. But thanks to innovative revenue streams, the company shares are starting to rise. After listing publicly in 2014, GoPro shares hit an all-time high of $93.85.
GoPro – Technical Analysis
According to the financial statement released by GoPro, the market cap is at $1.31 billion with total assets worth $ 1.266 billion. Revenue for 2021 came in at $1.16 billion with a profit margin of 31.97% compared to $891.92 million in 2020.
Moving averages such as Exponential Moving Average (10)(8.06), Simple Moving Average (10)(7.93), Exponential Moving Average (20)( 8.16) and Simple Moving Average (20)(8.10) are indicating a buy action. Oscillators such as Relative Strength Index (14)(49.25), Stochastic %K (14, 3, 3)(61.75), Commodity Channel Index (20)(28.68), Average Directional Index (14)(34.84) and Awesome Oscillator(−0.33) are neutral.
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Recent Developments
Founded as Woodman Labs, Inc, GoPro manufactures action cameras and develops its own mobile apps and video-editing software. It initially focused on the connected sports genre, developing its line of action cameras. GoPro has always focused on innovation, which has resulted in its top position in the action camera industry. But its business began to stagnate in the years following 2014 which resulted in a diminishing number of resources it had available to invest in its products. It has always relied on large retailers to sell its products instead of engaging customers directly on the sales side.
Things started to improve in 2021 as its website accounted for 34% of the company’s total sales for the year. This proved that some customers wanted to buy from the brand directly. This has two advantages. The first is that driving traffic to the GoPro.com website allows the company to sell and build a deeper relationship with each customer. Secondly, selling products directly to consumers results in more profit. GoPro released its HERO10 Black action camera in September 2021. It is capable of filming in 5.3K high-definition, with groundbreaking video stabilization technology.
The recent success has prompted the company to expand its camera line from two to four. With plans to release more cameras and a brand new desktop software application, Go Pro hopes to target new customers next year.
Should You Buy GPRO Shares?
Investors should look at GoPro’s subscription model, which will increase GoPro’s gross profit margin to 80%. The company has a lot brand loyalists who have access to exclusive discounts, live streaming capabilities, and unlimited cloud storage. This generated total revenue of $53 million, which accounted for 5% of the company’s revenue in 2021. The company has attracted 221,000 subscribers for the app alone, separate from the GoPro.com subscriber numbers. Its new Quik camera and editing smartphone app is included in every subscription but can also be purchased separately.
JP Morgan Chase analysts think that GoPro shares can soar to $15 a share, representing an 87% upside from its current price. Rival Morgan Stanley and Wedbush Securities also predicted upside from here. This is justified as the company recovered and is turning a profit again with $0.90 in 2021 earnings per share. With so many chances that the shares will go higher, now is the right time to buy GoPro shares.
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