GoPro Inc (NASDAQ:GPRO) reported a very successful 3Q earnings on Friday in a conference call. GoPro Inc (NASDAQ:GPRO) exceeded the estimates on all three fronts, revenue, gross margin and EPS guidance. GoPro Inc (NASDAQ:GPRO) shares also popped up by 11% in after hours. Wedbush Securities Managing Director, Michael Pachter feels that GoPro’s 3Q report is not just the revenue story. Pachter talked on CNBC about Why he feels Gopro Inc (NASDAQ:GPRO) has a broad addressable market.
GoPro Inc (NASDAQ:GPRO) reported a third quarter revenue of $280 million, which was up 46% year-over-year. Pachter feels that GoPro’s conference call was not just a revenue story, but it also indicates the headroom that GoPro’s brand has. He feels that the image of GoPro as an outdoor athlete brand is turning into a mainstream brand which cater to variety of consumers. He added that the Youtube videos indicates the broad addressable market for GoPro Inc (NASDAQ:GPRO) products.
Many suggest that the successful third quarter results indicates that GoPro has added many new customers as opposed to selling cameras to just the existing customers. But Pachter doesn’t think so.
“[…] I am certain that in the past quarter it was probably a lot more repeat customers. But in the coming quarter you know they just launched the $129 camera, that’s going to make this affordable for a whole new class of people,” Pachter said.
He mentioned that he just bought a couple of these cameras for his kids as Christmas gifts. He feels that at $129 the GoPro’s cameras might turn into an affordable gift for many during the Christmas season. He was confident that this will become a mainstream product for GoPro Inc (NASDAQ:GPRO). He mentioned that this $129 GoPro Inc (NASDAQ:GPRO) product might boost the 4Q sales and sell big during the holiday season.