GoPro Or 'GoWow'? Company Soars On 'Apple-Esque' Results
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"I said they could possibly do an Apple-like quarter," Sean Udall, CIO of Quantum Trading Strategies and author of The TechStrat Report, told Benzinga. "They might have done an Apple squared-type quarter."
Cody Willard, chairman of Scutify (a financial social network) was equally impressed by GoPro's earnings.
"How about 'GoWow'?" Willard told Benzinga. "The magnitude of that beat and the size of that top-line and the strength of their margins was very impressive. I've been leery and still am about GoPro's long-term ability to keep those margins up, but at least for now, margins looked great and the top-line beat was phenomenal."
Udall said the results were "literally massive" and that his thesis is beginning to play out.
"$634 million vs. $580 million expected -- that's just a jaw-dropping, stunning, crazy number," said Udall. "It is absolutely Apple-esque. It is a stunningly good number."
GoPro may be flying high, but the company is not without hurdles that need to be overcome.
"Everything for GoPro depends on it making its ecosystem more friendly," said Willard. "It's got to be easier to manage the videos, to turn on the video recorder, to set it up. It's just too hard. That's what GoPro's problem is. It reminds me of a Motorola RAZR. We're going to have an iPhone equivalent of this at some point. Not necessarily from Apple."
Willard said he thinks Sony Corp (ADR) (NYSE: SNE) could be a potential threat to GoPro's future. He said that is one of the reasons why he is long Sony but not GoPro.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
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|Jan 2017||Longbow Research||Downgrades||Neutral||Underperform|
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