Will GoPro Stock Gain From Launch of New Affordable HERO Camera?
GoPro GPRO recently introduced a cutting-edge "4K'ing Tiny" camera — the HERO. With its ultra-compact design, waterproof durability, stunning 4K video, intuitive controls and a price tag of just $199, GoPro's latest offering brings premium features to a much wider audience. It is currently available for purchase both online and at retail stores around the globe.
Weighing in at just 86 grams, the HERO is the smallest and lightest camera GoPro has ever launched. It boasts a compact design that is 35% smaller and 46% lighter than the HERO13 Black. The HERO’s minimalistic design and affordable pricing, paired with its robust build, make it an ideal choice for travelers, families, creators and adventure seekers who want a 4K camera without the heavy price tag. For those who prefer slow-motion features, the HERO offers 2x slo-mo at 2.7K resolution, allowing to capture every detail of fast-moving subjects. Additionally, the camera can shoot in 1080p HD, providing multiple options depending on the user’s needs.
The ability to grab 8MP frame grabs from 4K videos is useful for extracting high-quality stills from video footage using the GoPro app. Owing to its ruggedness and versatility, the new HERO is likely to gain traction among adventure seekers. Like its predecessors, the HERO is built to withstand harsh environments like mud, snow and other challenging settings. Its waterproof design allows it to be submerged up to 16 feet (five meters), making it suitable for capturing underwater moments or rugged outdoor adventures.
Moreover, the HERO features built-in folding mounting fingers, allowing smooth attachment to GoPro’s vast array of mounts. The versatility and adaptability of the HERO open up endless ways to capture one’s activities.
GPRO’s HERO Has Intuitive Touch Display, Simple Controls
The new HERO redefines simplicity with GoPro’s easiest-to-use interface as yet, with intuitive controls that make it perfect for users who want a hassle-free experience. The rear touch display on the HERO adds another layer of convenience. With just a swipe, users can quickly change shooting modes, check battery status, or see how much space is left on their SD card. It also pairs seamlessly with a smartphone via the GoPro app, which facilitates remote control of the camera, and real-time content transfers.
GoPro is known for its market-leading video stabilization. The HERO uses GoPro’s HyperSmooth technology during playback through the GoPro app, smoothing out videos to give them a presentable look.
GoPro has designed the HERO with its Enduro battery technology, which provides impressive performance even in challenging conditions. On a single charge, the camera can record continuously for over one hour at its highest video setting (4K) at a temperature of 77°F (25°C). The battery is capable of working in a wide range of ambient temperatures, ensuring reliable performance whether shooting in the scorching heat or cold.
Will This Innovative Launch Bouy GPRO’s Revenues?
At just $199, the HERO is GoPro’s most affordable camera to date, offering exceptional value for its price. This lower cost makes it accessible to a diverse range of users, capturing a family vacation, recording extreme sports, or simply looking for a lightweight, hassle-free camera. With rapid adoption, GPRO is likely to witness top-line expansion and boost the stock trajectory.
However, a further delay in the launch of a new entry-level camera into 2025 instead of the fourth quarter of 2024 is likely to hamper its performance. The delay in launch will have an adverse impact of $20-$25 million in the fourth quarter of 2024, relative to earlier guidance. The cumulative effect of delayed product launches for 2024 revenues is projected to be $100 million.
As a result, the company now expects units to be between 2.6 million and 2.7 million compared with 2.85 million projected earlier. Revenues in 2024 are anticipated to be in the range of $850-$870 million compared with the earlier projection of slightly higher than $900 million.
Apart from the delays, cautious consumer spending in the absence of promotional activity, declining camera sales at GoPro.com, global macroeconomic uncertainties, forex volatility (China and Japan) and a competitive backdrop remain woes.
GPRO’s Zacks Rank & Stock Price Performance
At present, GoPro has a Zacks Rank #3 (Hold). GPRO’s shares were up 1.5% in the last day’s trading. Shares of the company have lost 59.7% in the past year against the sub-industry’s growth of 10.3%.
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Stocks to Consider
Some better-ranked stocks from the broader technology space are Harmonic Inc. HLIT, Arista Networks, Inc. ANET and Ubiquiti Inc. UI. HLIT and UI presently sport a Zacks Rank #1 (Strong Buy), whereas ANET carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Harmonic enables media companies and service providers to deliver ultra-high-quality broadcast and OTT video services to consumers globally. HLIT delivered a trailing four-quarter average earnings surprise of 32.5%.
Ubiquiti company offers a comprehensive portfolio of networking products and solutions for service providers and enterprises. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques.
Arista Networks supplies products to a prestigious set of customers, including Fortune 500 global companies in markets like cloud titans, enterprises, financials and specialty cloud service providers. It delivered a trailing four-quarter average earnings surprise of 15.02%. In the last reported quarter, ANET delivered an earnings surprise of 8.25%.
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