GoPro’s Opportunities and ObstaclesIn 6 Slides

The opportunities

Image source: GoPro.

GoPro already has fantastic consumer brand recognition, and IDC says that the company has more than 30% market share in the camcorder segment. GoPro’s strong position in action cameras has helped it spike revenue from just $64 million in 2010 to $1.6 billion in 2015.

Image source: GoPro.

Aside from action cameras, the company will start selling drones later this year, as a way to expand into new markets. The company is also looking to make money from its vast amount of user-generated content by creating content through GoPro Entertainment and licensing other videos through GoPro Licensing.

The opportunities

Image source: GoPro.

But the company is facing some serious obstacles. Revenue declined 31% year over year in the most recent quarter, and the price of the HERO4 Session camera was slashed because of lack of demand. Additionally, the company recently had to lay off 7% of its employees.

Image source: GoPro.

The obstacles

Image source: GoPro.

“This is absolutely indicative of the one-trick pony story. The software hasn’t been updated. Over the last 18 months they only launched two cameras and both performed poorly.” — Andrew Uerkwitz, Oppenheimer & Co. analyst

Investors have pummeled GoPro’s stock because of the company’s lack of revenue diversity and poor camera sales. Shares of GoPro are down more than 70% over the past 12 months. Image source: Yahoo.

The obstacles

Potential trouble spots

It’s still unclear whether or not GoPro will find success in the drone market, and if it can start making any significant revenue from user-generated content. GoPro needs more than just action camera sales to bring back growth, and right now investors just aren’t seeing it.

Image source: GoPro.

The next billion-dollar iSecretThe world's biggest tech company forgot to show you

something at its recent event, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has

nearly unlimited room to run for early in-the-know investors! To be one of them, just click here.