So this might be really interesting for Investing 102 to watch the whole GoPro IPO...
We watched the Facebook IPO - ultimately it was kind of a flop vs expectations of everyone that bought 2 shares was going to be an instant millionaire (LOL but close to the truth)
I was watching the interview with Nick Woodman, the CEO of GoPro, on CNBC this morning. He was asked a very simple question:
Going forward what's to stop competitors from jumping in and making a better camera - or getting into the business?
Frankly - he fumbled the response - which means he has no answer... He launched into a spiel about the "experience" and "sharing the human experience" blah blah blah - but he didn't have an answer for the actual question.
I think it's the best - most simple question..... if you're an INVESTOR... What does this (or any company) have that others don't - and what do they have going forward to continue making money and growing their business? It will be very interesting to see what GoPro has going forward. Right now they have the brand name! So did Walkman... So did BlackBerry.... I can think of many companies that OWNED their markets at some point. But then what happened to them?
Now - I think GoPro has an outstanding quality camera as far as video quality - I also (and I own a couple) think they suck to run... and I also have other video cameras that are just as good - and are easier to operate - but they're also more expensive and they're certainly not as "handy". So the big question is - can someone come along and make a better mousetrap? That remains to be seen. Apple iPod killed the Walkman... and when was the last time you bought anything with the SONY brand name?
I'm using this as a THOUGHT PROCESS -- not to discuss GoPro and whether or not they're going to have a huge IPO etc. But it will be interesting going forward I think and we can maybe revisit this 5 years from now.
|