GoPro Inc Stocks to Remain Bullish after Impressive Q2 2017 Performance

GoProGoPro Inc (NASDAQ: GPRO) which is an Action Camera manufacturing company has reported a GAAP and non-GAAP net loss in Q2 of the fiscal year 2017. The net loss has narrowed from the past year.

The performance of the company was exemplary in the second quarter and has surpassed the expectations of the analysts. As compared to last year, there is a growth in the company revenues in Q2 2017. Based on the dramatic inventory reduction and optimistic outlook issued by GoPro Inc, we speculate the company stocks to remain bullish in the coming weeks.

San Mateo which is a California based company has submitted a report in which it mentions about a GAAP net loss of $30.536 million. It translates to $0.22 per share on total revenue of $296.53 million in the second quarter of the fiscal year 2017.

In the same period last year, the action camera manufacturing company has registered a net loss of $91.767 million or $0.66 per share on total revenue of $220.76 million.


If we remove the charges, the non-GAAP net loss in Q2 2017 has narrowed down to $12.914 million or $0.09 per share. In the similar period in 2016, the non-GAAP net loss was $72.595 million or $0.52 per share. The analysts at FactSet have speculated a non-GAAP net loss of $0.25 per share of a total amount of $269.1 million.

Approximately half of the revenues of the company in the second quarter of 2017 were generated from the markets outside the United States. Nicholas Woodman who is the CEO of GoPro Inc said that the recent results of a combination of robust demand and cost-cutting measures. He is hopeful that the company will be able to generate profits by the end of this year.

The company launched Quikstories during this second quarter. It is an editing application that allows the user to create video and share them on social networking platforms. It is entirely a favourite app that was installed 5.6 million times, and there is a 112% increase in monthly active users (MAU) on year on year basis.

To restructure the company, GoPro had lain of hundreds of its employees and the entertainment division was also shut down. In the past one year, the company witnessed two notable failures – issues about Hero4 Camera and recall of Karma drone. However, Karma Drone was reintroduced this year after all its matters were sorted out. As per the Retail Tracking Service of NPD, Karma was the number two seller in its category.

During the Amazon Prime Day, the company has also revealed its response to its latest camera called Hero5 black. GoPro said that one week’s worth of sale was realised on that single day even though no discount was offered on the camera.

By the end of this year, this camera manufacturing company is looking forward to launching some different products. The list includes the latest version of Hero6 which is an action camera. According to the analysts, with the new product launchings, the company would be able to exit this year with minimum inventories. JP Morgan has particularly appreciated the commitment of GoPro in curtailing the stockpiles by 39% to a figure of $80 million from quarter 1.

In this current quarter, GoPro is hopeful of a net loss of $0.06 per share on a total earning of $0.05 per share. The company speculates revenue loss between $290 and $310 million. The analysts anticipate a net loss of $0.12 per share on total revenue of $278.5 million. Hence, the stocks of GoPro is likely to remain bullish in the weeks ahead due to an effective response to its video editing software, planned product launching and impressive Q2 2017 performance.

If we look at the price chart below, the stocks of the company have started to rise after consolidating at about $8 for approximately six months. The stock has also made bullish crossover above its 50-day exponential moving average. In addition to this, the RSI indicator is in the oversold region. Hence, we expect a rally soon.

GoPro Stock Price August 29th 2017

GoPro Stock Price August 29th, 2017

It is recommended to invest in a call option to benefit from the increase in share prices of GoPro. For the trade, a strike price of $9 is recommended, and one should choose an Option expiration date around 7th of September 2017.

Rich Archer

Rich Archer

Hi, my name is Rich Archer. I am living in London. Welcome to Binary Manual. Reach to Binary Options broker reviews and market news here.

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