In an interview on CNBC, Alex Guana, JMP Securities senior analyst, explained that expectations for GoPro Inc (NASDAQ:GPRO) should be high and gave the reasons behind his firm’s high expectations.
“It has achieved great things and the company right now, a billion views, GoPro branded content of about 50 million hours in the first quarter, it is the number 11 fastest growing brand on Instagram right now, and about 212,000 followers last month, so it is achieving great things, that’s why our expectations are so high,” he said.
He added that it could be a major media brand, and it is accepted that GoPro Inc (NASDAQ:GPRO) is a media play but its media value is yet to be determined.
“[…] In Internet advertising, there is a $50 billion opportunity up for grabs this year. We think that the business model as it exists today can support a billion in revenue in terms of monetizing the content that they are already creating. So, the opportunity is there […],” Guana also said.
GoPro Inc (NASDAQ:GPRO) is producing $1.0 billion in revenue from the content they are currently posting. With 8.5 million cameras sold and only 5% of the market, the company is still in its infant stages. However, it has gone up 0.34% in a rough market today.
GoPro Inc (NASDAQ:GPRO) has come into an industry that was in decline, an industry with a number of major players, and has outstripped them.
Guana mentioned that Sony Corp (ADR) (NYSE:SNE) was attempting to imitate GoPro Inc (NASDAQ:GPRO) and also that from what was apparent, Sony Corp (ADR) (NYSE:SNE) was doing things quite poorly. However, Apple Inc. (NASDAQ:AAPL) had succeeded in the same way GoPro Inc (NASDAQ:GPRO) has. He was of the opinion that GoPro – and companies that are similar – can go against the tide and show great leadership.