GoPro Turning Inventory From Its Biggest Risk to a Point of Strength
One of the most difficult things about running a hardware company like GoPro Inc. (NASDAQ: GPRO) is trying to figure out how much inventory to build. Customers generally shop for new action cameras shortly after new products are launched or during the holiday season, which creates a challenge: build the correct amount of inventory to capture sales, but not so much that there's an excess that eventually needs to be sold at a discount.
A couple of years ago, GoPro found out the hard way what excess inventory does to a business, and shares dropped 90% as a result. Management has learned its lesson and is now using inventory to its advantage.
Hero 6 Black was the only new action camera GoPro introduced in 2017, for good reason. Image source: GoPro.
Source: Fool.com
GoPro Inc. A Stock
Currently there is a rather positive sentiment for GoPro Inc. A with 4 Buy predictions and 1 Sell predictions.
Based on the current price of 1.45 € the target price of 4 € shows a potential of 175.67% for GoPro Inc. A which would more than double the current price.
