$GPRO is Going Back to its IPO price
An update on my $GPRO thesis. A low-key monopoly, growing margins + annual recurring revenue (D2C shift + subs), reduced OPEX, pricing power, new management, awesome balance sheet and healthy cashflows. Also anomalously under priced, 300% upside from here IMO.
Note: I´ve moved to SubStack. I´ll still be posting things on Medium occasionally , but now you can find most of my new work here.
GoPro is perhaps the most unobvious turnaround story that we have seen in a while. Not because it is complex to understand what is going on within the company, but because investors across the board seem to be allergic to it. Try pitching GoPro to anyone and see the average reaction. This is what is keeping many from looking under the hood— the kind of dynamic that generates fantastic opportunities in the market. Meanwhile, the company is very much turning around, with substantial signs of progress over the last few quarters and a corresponding price action. I first wrote publicly about GoPro last November, in this post. Below, an update on my GoPro thesis and my take on why I think it will head back up to its IPO price.
