My wife and I have been spending a lot of time at the hospital with our newborn in Albuquerque, which is a 175 miles from where we live. We have been so touched by the outpouring of support. I have to continue to support my family and deliver on my commitments, and I’m back in the office again today.
Let’s hit on Greece and some thoughts on wearables/GoPro.
Greece? Great musical. Markets have been dancing to this song for weeks, er, well years really. The EU and Greece need to recognize the losses, write down the debt and/or #Grexit entirely and let’s move on already. Let the Greek people move on already. The losses are there, the loans can’t ever be repaid in full. #Reality hits eventually, one way or another. This music sounds dated. http://youtu.be/8gqiyqu1GVE
Meanwhile…GoPro’s new ice-cube-sized HD video camera was rolled out today and you TradingWithCody subscribers won’t be surprised to see this comment at the bottom of the article and all that it underscores about our #Wearables future:
“I’m waiting for the $150 lapel pin sized GoPro with 20hrs of recording time, cloud connected, and with real time streaming to my Social Media followers.
The good news for GoPro shareholders is that the new ice-cube-sized camera is so small that it will indeed displace GoPro’s bigger form factor HD cameras and raises the bar for all those Asian GoPro wannabe’s.
At a $400 price tag, the GoPro Hero4 Session is more expensive than an Apple Watch Sport, but that high price tag means that margins on it are going to be huge for GoPro for the next few quarters as no other wearable HD camera can come close to matching this little guy.
If GoPro had embraced their hardware-centric business model and sold me on their ability to stay ahead of the Asian GoPro wannabes with ever smaller, easier-to-use and cooler form factors, including the Session, the potential for GoPro drones and its own quadcopter drones and 360-degree virtual-reality rigs, rather than having tried to convince me that they were going to become a media company — well, I’d probably own some GPRO right now. I don’t see GoPro ever succeeding in becoming a high-margin media company and their YouTube channel doesn’t count. I might become convinced that GoPro could stay the world’s leader in HD video hardware.
But I just can’t get comfortable with anything I ever hear and read from the management at GoPro so I just can’t get comfortable with the GPRO stock. I’ve long said that Ambarella was a much better way to invest in GoPro’s revenue growth and I still remain of that mindset.