Even if a penny stock is largely beaten down for long periods, a single event can help reignite the stock. Something of the same nature could be in the offing for action-camera manufacturer GoPro Inc (GPRO Stock Report). There is a whole lot of speculation whether the launch of its Hero 8 camera on October 1 is going to help revive the company’s stock price.
Penny Stocks To Buy Or Sell: GoPro (GPRO)
The company has already released the teaser video for the new model. It has also sparked a lot of speculation. Here’s a closer look at one of the penny stocks that could find itself on watchlists before October 1.
The company went public around five years ago. At the time, there was a lot of excitement about cameras meant for outdoor aficionados. However, things didn’t pan out as expected as the market proved too small.
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Additionally, competitors came up with cheaper products that destroyed GoPro’s competitive advantage. These factors and the company’s own mismanagement of the business led to stunted growth as well as lower margins for years.
The company already has a Hero 7 camera. But the Hero 8 has a wide range of upgrades. Given this info, the company’s earlier products didn’t elicit much enthusiasm from customers since the upgrades were not as significant.
“As previously stated, we began production in Guadalajara, Mexico of our U.S. bound cameras in June to support sales beginning in the third quarter of 2019. This shift, along with proactive inventory realignment and global channel management supports our goals of driving growth, protecting our balance sheet and neutralizing the impact of tariffs.”Brian McGee, Executive Vice President and CFO
Many customers stuck to using the Hero 4 even though the Hero 7 was available. In the first two quarters of 2019, the company’s margins stood at 34.2% and 35.8%. Additionally, GoPro has projected revenue growth of 9% to 12% for the full year. All that points to a brighter future but a lot might depend on the performance of Hero 8.
GPRO Stock Catching Momentum Ahead O Release
Leading up to the October 1 date, speculation continues to fuel the market for this penny stock. After hitting 52-week lows of $3.52 earlier in September, GPRO stock has rallied as high as $4.86. Furthermore, the stock has held above $4.40 since September 11.
Whether this is a sign for GPRO to be a penny stock to buy or sell is up to investors. What can be said is that since the discussion started, attention is on the Hero 8. Will it make that big of a difference to GoPro’s bottom line? Or will it be another situation where people are less impressed by the “upgrades” and happy with Hero 7s or earlier?