GoPro Inc (NASDAQ: GPRO)
GoPro is having an incredibly strong day in the market today, and for good reason. The company announced that it has entered into a global partnership with the energy drink company, Red Bull. Today, we’ll talk about the agreement, how the market reacted to the news, and what we can expect to see from GPRO moving forward. So, let’s get right to it…
GPRO Enters Agreement With Red Bull
GoPro has been struggling in the market for quite some time. While the company does have a great product, they lack in one big area, marketing. However, investors were pleasantly surprised early this morning when the company made an announcement that shows it is attempting to lift marketing. Early this morning, the company announced that it has entered into a multi-year, global partnership. The partnership will include production, distribution, cross-promotion and product innovation, and will likely send GPRO to new heights.
This may not seem like a big deal at first glance. However, as part of the agreement, GPRO will become Red Bull’s exclusive provider of point-of-view imaging technology. This means that they will be in charge of capturing immersive footage of Red Bull’s media productions and events. This is huge when you think of the amount of exposure that this will bring to GoPro. The reality is that Red Bull manages massive amounts of events each year. At the moment, GPRO will have access to more than 1,800 Red Bull events in more than 100 countries. This is going to give the company a massive amount of publicity and hopefully, help it to sell its cameras. In a statement, Nicholas Woodman, founder and CEO at GoPro, had the following to offer…
“Red Bull’s global scale and execution is something to be admired. This partnership is very strategic for GoPro… We share the same vision… to inspire the world to live a bigger life. While we’ve worked closely for many years, as official partners we’ll be able to more effectively help one another execute our shared vision and scale our respective businesses. GoPro and Red Bull, as a match, are as good as it gets.”
How The Market Reacted To The News
For some time now, investors have been looking for good news surrounding GPRO. Unfortunately, with sales not being where they should be, investors have become concerned. Nonetheless, it’s clear that the news that was released today was exactly what investors were looking for. This can be seen in the gains we’re seeing on the stock today. Currently (10:54), the stock is trading at $9.82 per share after a gain of $0.56 per share or 6.02% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have a relatively mixed opinion with regard to what we can expect to see from GPRO. There’s no denying the fact that signing the partnership agreement with Red Bull was a great idea. However, I have to wonder if this is going to be enough to lift sales to a positive point. The truth is that most people know about GoPro. In fact, I knew about the camera for years, and it wasn’t until I purchased a kayak that I found a need for one. The bottom line is that the audience for GPRO branded cameras is relatively small, and I’m not sure that the Red Bull partnership will be enough to change that.
What Do You Think?
Where do you think GPRO is headed and why? Let us know your opinion in the comments below!