Market Overview

GoPro And Red Bull Finally Tie The Knot; Shares Spike

Share:
GoPro And Red Bull Finally Tie The Knot; Shares Spike

Shares of GoPro Inc (NASDAQ: GPRO) were trading up more than 5 percent on Tuesday afternoon, driven by news of a new multi-year, global partnership with Red Bull.

As per the agreement, the companies will cooperate in product innovation and content production, distribution and promotion, as GoPro becomes the exclusive provider of imaging technology for the energy drinks maker and well-known extreme sports sponsor. In turn, Red Bull will receive an equity stake in the action cameras company; according to GoPro’s CEO Nick Woodman, the position accounts for less than 1 percent of the company’s total shares outstanding.

Related Link: GoPro CEO: "The World Of Red Bull Is Going To be Brought To You By GoPro"

A Struggling Former Wall Street Darling

While GoPro continues to be the top action cameras brand, its sales have been slumping recently as competitors like China’s Xiaomi introduce cheaper alternatives in the market. Along with tumbling sales, shares of GoPro plummeted in 2016, having lost more than 45 percent of their value since the year began. "They need a refresh badly,” Dougherty & Company analyst Charles Anderson stated, suggesting this move could be it. "Historically, a ton of this stuff has probably already been filmed using GoPro cameras. My guess is we'll see more GoPro logos in those videos," he added, reiterating a Neutral rating on the stock.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Latest Ratings for GPRO

DateFirmActionFromTo
Nov 2020Morgan StanleyMaintainsUnderweight
Aug 2020Morgan StanleyMaintainsUnderweight
May 2020WedbushMaintainsNeutral

View More Analyst Ratings for GPRO
View the Latest Analyst Ratings

 

Related Articles (GPRO)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas M&A News Reiteration Analyst Ratings Movers Tech Best of Benzinga

Latest Ratings

StockFirmActionPT
CAMTStifelInitiates Coverage On19.0
ELMDNorthland Capital MarketsInitiates Coverage On15.0
DKNGUBSInitiates Coverage On52.0
DIODTruist SecuritiesInitiates Coverage On84.0
TGTArgus ResearchUpgrades205.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com