Why GoPro's Competitive Advantage Should Concern You
GoPro (NASDAQ: GPRO) stock benefited significantly from the 2020 stock rally. Since falling into penny-stock status one year ago, the maker of compact cameras for extreme adventurers has rallied more than 410% over the last 12 months. Nonetheless, while GoPro could survive as a company, an eroding competitive advantage likely dooms this consumer discretionary stock.
GoPro manufactures action cameras, mobile apps, and video editing software. From a certain point of view, it looks like a high-growth business. Grand View Research forecasts a compound annual growth rate (CAGR) of 17% through 2025. To date, it has sold over 26 million action cameras.
These cameras offer high-resolution and time-lapse photography. They can also shoot photos and videos under extreme conditions, such as during rapid movement or underwater.
Source Fool.com