$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.

Antonio Linares
6 min readMay 26, 2021

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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.

A low-key monopoly

In my opinion, GoPro is the most evangelic brand out there after Apple. Their why is strong. GoPro is an inspiring brand with millions of highly loyal followers and customers. As evidence, consider that in FY 2019, GoPro captured 93% of the dollar share in the action camera market in the US. This is because GoPro presents one of those rare occurrences in which a brand has a strong why, that is well alligned with their what and their how. This alignment produces gravitas, which is per se the cornerstone of the long thesis — GoPro has such a strong brand that it acts as a moat. It´s not immediately obvious, but after getting close to the brand for a while, you may be able to see/feel it. The force is strong in this one.

Growing margins + annual recurring revenue

The company was previously focused on driving hardware sales. Now, it focuses on driving a digital subscription service, aswell as hardware sales…

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Antonio Linares

Investor, Technologist. Post opinions, not financial advice. Do your own research. Follow me at TW:alc2022