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Report: Apple Could Buy GoPro

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Shares of GoPro Inc (NASDAQ: GPRO) spiked to an intra-day high of $18.41 after a rumor hit newswires that Apple Inc. (NASDAQ: AAPL) could take over the company.

DealReporter rarely adds much color to their calls, so take this news for what it's worth. However, FBR's Dan Ives thinks this would be a smart move.

"We believe an acquisition of GoPro would make sense for Apple; action cameras are uniquely positioned at the intersection of Apple's smartphone, wearables, and multimedia offerings," Ives said in a note on December 10. "Additionally, GoPro's new product cycles could open the door to areas where Apple's competitors are investing heavily (e.g., drones, VR), and Cupertino has been playing catch-up.

"We also see strategic value in GoPro being integrated with Apple's strong multimedia ecosystem (e.g., iTunes, Apple TV, etc.)," the analyst continued.

Ives said buying GoPro would "make sense" for Apple. He suggested the content produced by GoPro's amateur and professional users may also integrate well with Apple TV.

Related Link: GoPro Is 'Late' To The Drone Market

There was chatter of a GoPro takeover back in October, although traders told Benzinga at that time that they were ignoring the rumor.

GoPro stock has taken big a hit since August 2015, falling from the $65 level to its current price.

More Competition?

At this week's Consumer Electronics Show in Las Vegas, BGR looked into Nikon and Kodak's GoPro competitors.

"Nikon thinks its ready to take on GoPro and everyone else churning out action cameras these days. Kodak, on the other hand, is going retro with a digital 8mm camera that can shoot video on – wait for it – actual film," BGR wrote. "The Nikon KeyMission360...is a tiny video camera that can shoot stunning 4K video in 360 degrees. That’s certainly something unique from action cameras, and all the more impressive for Nikon which had stayed away from this product category until now."

The report continued, "Kodak's Super 8 camera is labeled as a 'next-generation film camera' on Kodak's website. We're looking at a product that will certainly get old-school photographers excited. The device gives you the ability to record videos on actual 8mm film that you can then view using a film projector."

Shares of GoPro traded recently at $18.09, down 1.7 percent on the day.

Posted-In: Dan Ives dealREPORTER FBRAnalyst Color News Rumors Movers Tech

 

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