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How to Buy GoPro Stock

GoPro has been one of the biggest technology success stories of the recent past, although GoPro stock has given investors a roller coaster ride since its initial public offering (IPO) and has settled at low levels. Still, good opportunities for traders and investors can often be found in tech stocks and companies with an advanced product like GoPro. 

Symbol Company Change Price Invest
GPRO GoPro
– 0.3%
$5.04 Buy stock

Quick Look: How to Buy GoPro Stock

  • Pick a broker. Find a place to buy and sell stocks that has the specific resources you need to trade. If you’re a beginner, look for a broker with educational resources. If you’re experienced, look for a trading platform that allows for customization.
  • Assess the trading platform. Get familiar with the broker you’ve chosen. Learn how to access the features within your account and make trades.
  • Fund your account. In order to make your first trade, you will need to put sufficient funds into your account.
  • Purchase GoPro stock. Begin trading and build your portfolio.

GoPro: Company and Stock History

GoPro designs, manufactures and markets durable action cameras for extreme conditions, as well as mobile apps and video editing software. Originally named Woodman Labs Inc., the company was founded in 2002 by Nick Woodman, a Californian surfer who invented the initial small camera that could be strapped to a surfer’s wrist and operated while surfing. 

The company’s first camera was sold in 2004 and used 35 mm film that required processing and developing. Subsequent models were developed for digital still and video cameras, such as the Digital Hero released in 2006. 

GoPro’s IPO occurred on June 25, 2014, when the company sold 17.8 million shares at $24 per share. The company was considered one of the best small cap stocks at the time of its IPO. 

In 2017, GoPro released the HERO6 and the Fusion cameras with significantly more features than the company’s original HERO, although the company also laid off 500 workers that year due to a recall of its first drone, the Karma, released in early 2016. 

Outlook for GPRO

Soon after its IPO, GPRO shares rose sharply to an all-time high of $93.85 in September 2014. After achieving that heady level, GPRO shares starting selling off and eventually lost most of their value. The stock hit an all-time low of $4.04 per share in December of 2018 after the company showed 4 quarters of negative year on year growth. 

GPRO stock complete price history. Source: Tradingview.

The original post-IPO decline in GPRO stock began in October 2014, shortly after making its all-time high. GPRO subsequently lost 2/3 of its value by March 2015, trading down to $37.13 per share. By the time GoPro began selling its Karma drone in January 2016, GPRO stock had dropped to a mere $11.23 per share. 

GPRO soon started running into problems after the release of its Karma drone, which the company recalled and eventually discontinued. The company showed negative earnings from September 2015 until September 2016, and then again from 2017’s 4th quarter until earnings eventually began improving after the last quarter of 2018. 

GoPro’s trailing twelve month, quarterly and annual growth rates and annual and quarterly revenue. Source: Macrotrends.

The stock’s most recent activity shows consolidation between the $5 and $7 per share level and according to Barron’s, major hedge fund D.E. Shaw has accumulated a 5% stake in the company with a total of 6.1 million shares. The big fund has purchased an additional 2.61 million shares since March of 2019, when it owned 3.52 million shares. This sort of buying interest underpins the stock.

GoPro seems to be on the upswing, reporting better-than-expected numbers for the first quarter of 2019. For the first quarter of 2019, the firm reported a smaller loss of -$24.4 million or $0.17 per share versus a loss of -$73.3 million or -$0.55 per share for 2018’s first quarter. 

For the remainder of 2019, GoPro expects revenues to increase by 7% to 10%, with its non- Generally Accepted Accounting Principles (GAAP) earnings currently expected to come in at $0.25 to $0.45 per share on margins of approximately 36.5%. GoPro’s 2019 second-quarter earnings are expected to be between $285 million to $305 million with anticipated earnings of flat to a positive +$0.06 per share on a non-GAAP basis. 

Why You Might Want to Buy It

  • GPRO Stock Price is Near Historical Lows: Though it traded down to $4 per share in December 2018, GPRO stock has since stabilized and found considerable support in the $4.80 to $6.50 level. This could present a buying opportunity for a patient long-term value investor.  
  • Accumulation by Hedge Funds: As the article mentioned above states, a major hedge fund, D.E. Shaw, reported accumulating large amounts of GoPro stock in June 2019. Hedge funds often accumulate stock in a company in advance of an anticipated merger, acquisition or news event, although this might just be a cheap stock purchase.  
  • Positive Future Earnings: Many analysts and GoPro’s own estimates are for positive earnings in the next quarter and moving forward. Improved earnings could be the catalyst that ultimately drives GPRO’s stock price higher.

Considerations Before You Buy

  • Possible Economic Downturn: A significant and widely anticipated slowdown in the U.S. economy could adversely affect camera sales and consequently, revenue and net income for the company. Any lower performance numbers would get reflected in GPRO’s stock price, which could then decline even further from its current low level. 
  • GPRO Competitors: While GoPro was the first of its kind when it came out, the market has since become saturated with excellent alternatives that have taken away considerable market share from GoPro. Cameras like the Garmin VIRB Ultra and the Sony FDR X3000R now offer comparable or better stabilization and video quality than GoPro’s offerings, while the Chinese manufactured Yi 4K camera offers most GoPro features at half the price. This loss of market share could continue to affect GoPro’s sales in the future and will ultimately weigh on its already depressed stock price.
  • International Tariffs: Due to the Trump administration’s trade dispute with China, GoPro began moving its production from China to Mexico. While this move would probably improve earnings in the long run, it will negatively affect earnings in the near term that could, in turn, put additional pressure on GPRO’s stock price. Also, if tariffs are imposed on Mexico, then the company may need to move production to the United States to avoid them.  

How to Buy GoPro Stock Using a Broker

To buy GoPro stock using a broker, you really just need a reputable stock broker that can execute stock orders on the Nasdaq (NASDAQ) exchange.

If you plan on buying GoPro stock just to keep as an investment in a trading account for the long-term, then you may want to pick a discount broker to save on commissions, although you would not get any of the extras you would enjoy by using a full-service broker. 

Online brokers vary on services and fees. While some brokers charge an inactivity fee for idle accounts, others offer account services at no cost. Keep in mind that how you buy GoPro stock is just as important as where you trade, so make sure you pick the right broker for your situation.

Step #1: Pick a Broker

Knowing your needs before selecting a broker can make your choice a lot easier. For example, if you have a lot of experience in the market and take positions in other assets, you may need a high-end broker with an advanced trading platform, volume discounts and extensive research resources. 

On the other hand, if you have limited market experience and need to expand your knowledge base, you might look for a broker with strong educational resources and a trading platform with a user-friendly interface you can easily operate.

Some brokers will be able to fill your needs better than others, so be aware of what your needs are before making a choice. Here are our picks for a few of our favorite online stock brokers:

Broker Best For Commissions Account Minimum Choose your platform
Webull
  • Active traders
  • Intermediate traders
  • Advanced traders
$0 $0
Get started securely through Webull’s website
1 Minute Review

Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit. Webull is widely considered one of the best Robinhood alternatives.

Pros
  • Commission-free trading in over 5,000 different stocks and ETFs
  • No account maintenance fees or software platform fees
  • No charges to open and maintain an account
  • Leverage of 4:1 on margin trades made the same day and leverage of 2:1 on trades held overnight
  • Intuitive trading platform with technical and fundamental analysis tools
Cons
  • Does not support trading in options, mutual funds, bonds or OTC stocks
Current Promotion

Ally Investment
  • Active traders
  • Beginners looking to start trading
  • Low fees
$4.95 volume discount available $0
Get started securely through Ally Investment’s website
1 Minute Review

If investors are on the hunt for a bargain broker, Ally Invest could be the one. With low commissions across the board, Ally Invest (formerly TradeKing) stops potential investors in their tracks with its especially low mutual fund commissions. Commissions on stocks and ETFs are notoriously inexpensive as well, and for more active traders or those with larger account balances, commissions can dip as low as $3.95 per trade.

Pros
  • Volume discounts available
  • Among the lowest fees in industry
  • Good for every experience level
  • Excellent customer service
Cons
  • Lacks physical locations
Current Promotion

$3.95 per stock trade for Active Traders at Ally Invest

eTrade
  • Mobile traders
  • Traders looking for research and data
  • Investors looking for retirement planning guidance
$6.95 for fewer than 30 trades/quarter. $0
Get started securely through eTrade’s website
1 Minute Review

E-Trade is best known for its user-friendly browser, desktop and mobile trading platforms and its extensive research and educational information. E-Trade may not have the lowest commissions compared to discount online brokers, but customers certainly get their money’s worth from E-Trade’s comprehensive offerings.

Pros
  • Extensive resources
  • Full banking services
  • Easy-to-use platforms
Cons
  • Limited access to ETrade Pro
  • Higher commissions than discount brokers
Current Promotion

60 days of commission-free trades with deposit of $10,000 or more

TD Ameritrade
  • Beginner investors
  • Advanced traders
  • Investors who want portfolio-building advice.
$6.95 $0
Get started securely through TD Ameritrade’s website
1 Minute Review

This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.

Pros
  • Superior technology
  • No account minimum balance
  • Excellent customer support
  • Premier data and news partnerships
Cons
  • Slightly higher commissions
  • Can be for more advanced users
Current Promotion

Trade commission–free for 90 days & get up to $2500

Step #2: Assess the Trading Platform

The majority of online brokers provide a free demo or virtual trading account so you can make trades in the market without risking any money. Opening several of these demo or practice accounts with different brokers can give you a good sense of which broker’s platform and services best meet your needs. 

For example, TD Ameritrade’s platform has an interface that is easy to navigate and can be used by novice and experienced traders alike. Other brokers that are geared more toward seasoned and sophisticated traders, such as NinjaTrader and Interactive Brokers, offer advanced trading platforms and trading accounts with many other useful features. 

Step #3: Fund an Account

Once you’ve selected a broker and practiced trading through its online platform, you can now fund your account. Some brokers have no minimum deposit needed to open an account, but each broker has different minimum requirements and account funding methods. Check with your chosen broker to make sure it’ll suit your budget and preferred account funding method.

Step #4: Start Buying GoPro Stock

Once you’ve reached this step, it’s a great time to step back and watch GPRO stock for a few trading sessions to determine the best price to buy using technical analysis. Once you know how much you want to pay for the amount of stock you’d like to purchase, you can then either put a bid in the market for that amount at that price, or you can simply buy the stock at the best price currently available in the market.

Is GoPro Stock for You?

Stocks of companies that have recently gone public often follow a certain price pattern, depending on whether the stock is well received or not. Among the companies that tend to be well received are high-tech and innovative companies that have not yet made money but which still have a cutting-edge product or desirable service. 

Underwriters tend to underprice the company’s stock in the initial offering and that, combined with the public’s overenthusiastic misperception of value and media hype, can make the stock rally to prices that fail to accurately reflect a company’s real worth at the time. 

Even Amazon stock, which had its IPO in 1997 at $18 per share, reacted in a similar fashion by trading over $100 per share in 1999, only to fall to under $6 per share in 2001. AMZN then consolidated by trading between $20 and $50 per share from 2003 until 2007. In 2008, the stock traded over $100, and it now trades vastly higher, at $1,869.67 per share.  

GoPro stock currently seems to be trading in the post-IPO crash consolidation phase, and it may range near present levels for some time. Going forward, how well GoPro continues to innovate and hold market share for its products will determine its growth prospects and, ultimately, the price of its stock. For a patient investor, GoPro stock may present a good long-term investment opportunity.

Looking to begin building your portfolio? Check out Benzinga’s guide on how to develop your own investing strategy.

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