There are good products and then there are great products, and there are good companies who only create one great product and then fizzle. However, we are occasionally blessed with a great company who also happens to make great products and Go Pro fits the bill.
Most gents my age can’t think about investments because they have to think about their next meal or their keeping their low level corporate job to feed their 2036 mutual fund, thing. I must make several long term thoughts in order to achieve infinity pool status.
Glassdoor employee reviews of the place are not the best. One employee was disappointed because the free food they offer their employees, yeah it’s not organic. I could see that being reason for a low rating. Overall, even with less than stellar employee feedback in public forum, they are still a cool tech company in California. This allows them to pay people less, very nice.
GoPro market cap is currently valued just under 5 billion. One month ago Apple paid 3 billion for Beats by Dre. These are headphones. There is a potential symbiotic bond between Apple and Beats, perhaps something to bolster their music business. Even without digging into the motives that drove Apple to value Beats at 3 billion, we can see that in-demand wearable tech is worth billions. If simple headphones can fetch 3 billion, then I see no reason why simple HD video cameras cannot fetch 9.
Finally, the GoPro is not just a great product. It has achieved the ubiquitous feat of going completely viral and garnering mass cultural acceptance. Children strap these cameras to their chests and heads with pride. Try walking around with Google Glass on with pride. Trying to hard brah. It is the Red Bull of cameras. You don’t have to walk around looking like a bunch of Starship Troopers. Cultural acceptance also gave Beats the 3 billion dollar price tag.
So who will buy GoPro? I could name a few, but maybe you could flex your brain muscles a bit on this one.
Raul is invested until further notice. Here’s to hoping it does not go all Twitter on me.
Price target $72
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megamaid has gone from suck to blow.