Market Overview

Chowdhry: GoPro Is 'Declining Asset Business,' No One Would Touch In M&A

Chowdhry: GoPro Is 'Declining Asset Business,' No One Would Touch In M&A
Related GPRO
Where There's Smoke, There's Not Always Fire: Be Careful With These 10 Rumor Mill Stocks
Are These Tech Companies Too Reliant On One Major Customer?
Getting Long GoPro For The Risk Averse (Seeking Alpha)
Related AAPL
What Exactly Went Wrong With Samsung's Failed Note 7? We Will Find Out Very Soon
Skyworks Delivers Again In Q1, Extends One Of The Best Track Records On The Street
Value Hedge Fund Returns Beating Growth on Long and Short-Term Bases (GuruFocus)
  • GoPro Inc (NASDAQ: GPRO) shares have been on a downtrend since August, and have lost 72 percent in six months.
  • Global Equities’ Trip Chowdhry said that the company is “total junk” and fundamentals are nonexistent.

GoPro preannounced its 4Q results significantly short of expectations. Revenues came in at $435 million, missing the forecasted $521 million. The company indicated plans to lay off 7 percent of its workforce.

See Also: GoPro Flashes Another Warning Signal

Analyst Trip Chowdhry commented, “Our views on GPRO have remained unchanged to what we presented on October 28'2015, February 07'2015 and February 05'2015…Many kept telling...Drones are coming, its a media company etc etc....basically investment thesis were being built on imagination.”

He added that GoPro is a "declining asset business," and is not a product company, media company or drone company. Referring to GoPro’s M&A potential, the analyst wrote, "No one wants to touch [the company],” and that it would not add any value to Apple Inc. (NASDAQ: AAPL).

Apple may have a fate similar to that of GoPro and Fitbit Inc (NYSE: FIT) in the absence of an immediate executive correction. Trip recommended the replacement of Apple’s current CEO and CFO with Job Rubinstein and Fred Anderson, and the letting go of Angela Ahrendts as the Retail Executive.

Trip mentioned that GoPro, Fitbit and Box Inc (NYSE: BOX) are “total junk,” and are no different from Groupon Inc (NASDAQ: GRPN) and Zynga Inc (NASDAQ: ZNGA), since “fundamentals just don't exist.”

Posted-In: global equities Trip ChowdhryAnalyst Color Short Ideas Top Stories Tech Trading Ideas Best of Benzinga


Related Articles (AAPL + BOX)

View Comments and Join the Discussion!