The GoPro HERO6 was revealed at the end of September and it was supposed to be a major moment for the company. However, after the Google Clips announcement, GoPro stock tumbled as investors worried that one of the world’s biggest tech companies had just beat GoPro at their own game. The fear quickly set in that the GoPro HERO6 was dead on arrival after Google Clips promised to do a lot of what has made GoPro the leader in the wearable camera industry. Investors clearly saw the potential for the GoPro HERO6 to be a flop.
However, is the GoPro HERO6 a flop in reality? Does Google Clips actually threaten the HERO6? A comparison of the two devices shows that there are just as many differences as similarities between the two wearable cameras. As we often find in the tech industry, hype does not always equal reality. Both cameras are great but, in reality, Google Clips will not be replacing the GoPro HERO6 for dedicated sports video shooters who need a small, wearable action camera that has waterproofing and other essential features.
The initial stock sell off by panicked investors appears to be over and some analysts are even encouraging investors to buy GoPro stock in anticipation of positive news over the coming months. Joseph Wittine of Longbow Research has upgraded his rating on shares of GoPro from “neutral” to “buy.” His reasoning for the rating change is as follows:
For this call to work, we need the just-launched $499 HERO6 Black to not be a flop. It is very early, though we have obtained some initial channel reads which show (1) solid demand from GPRO’s base, (2) measured but good-enough interest from mainstream consumers, and (3) solid execution that stands in stark contrast to last year’s HERO5 launch…
Joseph Wittine appears to believe that early sales numbers for the HERO6 are solid and this should lead to positive news in future earnings reports. Does this mean the HERO6 is a flop or not? It’s too early to make that call but things appear to be starting well for the GoPro HERO6.
We will have to keep an eye on GoPro as sales numbers begin to roll in after the holiday season. This season could make or break the HERO6 and determine whether the new version of the popular action camera is a flop or not. If not, it appears that investors may have an opportunity to buy in low while some worry about the threat of Google Clips. I personally think the two devices serve two different markets and the sales numbers will reflect that.
What do you think about the upgrade to the GoPro stock outlook by Joseph Wittine? Is the GoPro HERO6 a flop or not? Let us know your thoughts in the comments section below.