GoPro Stock Explodes….Quarterly Earnings on Fire
Quick Summary:
GoPro Q3 Non-GAAP EPS of $0.20 beats by $0.14; GAAP EPS of $0.02 beats by $0.09.
Revenue of $280.51M (+113.9% Y/Y) beats by $61.11M.
Adjusted EBITDA of $39.18M vs. consensus of $15.2M.
I’ve done a video in the past talking about GoPro and how I am a new fan. The company has decided to run their business on a subscription basis. I love subscription based business. I think it’s free money. Consumers send you money every month for a promise of services that the consumer may or may not even use. Once the company prerelease some of their early results, the stock popped about 30 percent.
Once I heard of this, it’s all I needed to know. It was that pop in the stock price that caught my attention to the stock and after doing a little research, I decided to get onboard by buying long term leap option. Well that moved paid off today as Gopro popped another 25 percent after a terrific earnings report. They had much success with their subscriptions and theirs no change in the outlook. Gross margins increased 21 percent YOY and the cash on had basically doubled. That’s just a couple of bullet points. I did a full video on their earnings right here. I also disclose in the video how high this stock can actually go.
If you want to get in on some of my insights, you have to subscribe to the Youtube channel and be sure to hit the notification bell. I don’t usually make trades based on fundamentals, but this one was too good to pass up. It was obvious the stock price would head higher over time. Gopro stock has been depressed for years. Virtually, ever since the stock had it’s IPO it’s been heading down almost to penny stock territory. Most investors sold off this stock because they believe it doesn’t have a moat. Amazon is filled with knock off type Gopro cameras. Other manufactures like Sony also make action cams. With this new subscription plan, it should give Gopro something unique from the completion and also stabilize the stock price to go higher. Finally.