GoPro Inc (NASDAQ:GPRO)’s share price has been going up very rapidly since the company launched the IPO last week. The stock is currently trading over $40 today.
Geoff Lewis, Founders Fund partner was discussing the tech bubble that might burst in the near future on CNBC earlier today. He feels that there are early warnings where a lot of new companies that are not very good enter the market and incidentally disrupt existing players. Lewis said that the private investors buy by assessing the future of the company and what it might be worth down the road.
Lewis was worried about the tech IPOs that will be launched in the next 12 to 18 months and he feels that even if one big IPO goes down as a failure, it might hurt the market. He was impressed by Nicholas Woodman and he said that Woodman was one of the most talented marketers ever in the history. He praised how GoPro Inc (NASDAQ:GPRO) has built a brand and he thinks that GoPro Inc (NASDAQ:GPRO) has a brand monopoly in outdoor adventure athletes.
However he feels that GoPro Inc (NASDAQ:GPRO) needs to build an entirely new line of business and he mentioned how their sales were not very impressive recently. He said that the team Woodman has can achieve what it takes however he is not buying the stock currently.
“The wind is not behind their sales, so he is going to have to pull off an incredible trick of building an entirely new business line off of that community”. Lewis stated about GoPro Inc (NASDAQ:GPRO)’s future.
Lewis feels that a lot of companies do not go public sooner because they have a really good vision and they might have a different goal after 10 – 15 years and hence the valuation might be lesser if they go public now. Industry analysts are currently divided on GoPro Inc (NASDAQ:GPRO)’s stock where few are bullish on it and the other are bearish.