GoPro Inc’s (NASDAQ:GPRO) debut was definitely “oversubscribed,” Charlie Anderson told CNBC in an interview.
The comment comes from the Dougherty & Company senior research analyst after GoPro Inc (NASDAQ:GPRO) had its initial public offering late Wednesday, which some say is the largest IPO by a consumer electronics company in over two decades.
Anderson said that the deal was “oversubscribed” and that GoPro Inc (NASDAQ:GPRO) could have priced their stock higher. He said:
“No doubt, really, the deal was way oversubscribed. There were, quite frankly, many institutional investors who wanted shares who couldn’t get any. They probably could have priced it higher. It was really reflective of the demand.”
When asked about what should be expected for the company after its IPO, the analyst said that the company is actually set up for good performance in the coming couple of quarters. He said that when his firm checked, the company’s stores were pretty clean on inventory. However, he said that people should really think about investing in GoPro Inc (NASDAQ:GPRO) if they are interested in it for the long-term.
Meanwhile, Anderson was also asked about the long-term prospects for the company. Andrew Ross Sorkin voiced concern whether the company will become a highly commoditized products company with a lot of competition. Anderson said that it could already be happening but that the company, through its name, will survive.
“What’s interesting [is that], I think, to an extent, it has already happened. If you go into a consumer electronics store, you’ll see a Sony camera that’s selling for half the price. You’ll see JVC. These are big brands and they’re basically getting no traction whatsoever. It’s really to Nick Woodman’s point, a lot of it is the brand. If you see Kelly Slater the surfer [and]Shaun White the snowboarder use GoPro, you see a cool viral video that’s GoPro, that’s what you want. You didn’t see it shot with a Sony camera. You [also]have to remember [that]it’s a very niche market. It’s only just less than 4 million units last year. To someone like an Apple or Google, that would be nothing, maybe a month of iPad.”
Watch the video below where GoPro Inc (NASDAQ:GPRO) pitching itself as a media company was also discussed.