GoPro. Up 60% in 4 months. (And other updates.)

gopro surfer

GoPro wingsuit

Earnings season time and 3 of the stocks in the BfGf Portfolio has reported their latest financial results.  GoPro, Chipotle, and Apple.  I haven’t had time to write my Apple analysis but hey, let’s just say they generate a hell lot of cash and the iPhone 6 is still selling like hotcakes.  Who cares if the analysts missed their estimates?

 

GoPro, let me count the ways I love thee…

 

I have written about GoPro twice.  It has grown to become the biggest holding in my portfolio.  You can read about it in these posts:

 

http://bfgfmoneyblog.com/bf-gf-portfolio-secret-stock-revealed-gopro-gpro/

http://bfgfmoneyblog.com/gopro-up-36-bfgf-portfolio/

 

I bought it at $38.1 and the price is about $61 as I am typing this.  That’s about 60% gains.  It is not just hype, they got the financials to back it up.

 

GoPro_Q2_2015_Earnings_Results_Summary

 

When I saw that they have launched the smaller version of their camera, the HERO4 Session, I was expecting the sales of that to significantly add on to their revenue.

 

But a 72% increase?!?!  That’s just so sick!!!!!

 

I turned on my phone when I woke up to look at the GPRO earnings report and my eyes just popped out. It feels good when you see your companies doing well.  I won’t deny it. You feel like you are in a winning team.  Come to think of it, I have long forgotten what winning feels like ever since I decided to be a Liverpool fan when I was 15 years old.

 

But wait, there are more exciting things to come.  GPRO is unleashing their Video Content platform where users can upload their GoPro videos for Companies to purchase to use for their Video Marketing campaigns.  I am feeling very stoked about this and I can’t wait to see this idea become fully-implemented.  GPRO is aiming to be for licensed videos what Shutterstock is for licensed photos or Envato is for licensed music.

 

Think about it:

The cameras are already flying off the shelves, and now, users are being incentivised to record good video content to sell, so that they can earn extra cash?  Also, companies will be charged only $1000 per video license.  That’s a small drop in their ocean of advertising budget!  Sounds like a win-win situation to me!

 

Many other platforms have seen success with this form of crowd-sourced services/products:  Amazon, Alibaba, Udemy, Elance, Fiverr, Etsy, Shutterstock, Envato …

 

So far, I haven’t heard of a video content crowd-sourced platform.  And now, one such platform is coming up… and not just any platform… it will be GoPro’s platform.  Think of all the cash that will roll in!  ( To get an idea, the top 10 earners in Udemy brought in $17M, there are still 250k instructors teaching on Udemy.  Or maybe you can look at Shutterstock’s finances to get a feel of how much money GoPro can bring in?)

 

Brace yourself money

I am. so. damn. stoked.

 

 

Chipotle Highlights

 

As I am typing this, Chipotle (CMG) shares have spiked.  I don’t know why. I think their results are pretty okay.  But I am not complaining about the price spike as it represents an 11% gain for me.

 

You can read about my analysis of CMG here:

http://bfgfmoneyblog.com/new-stock-revealed-chipotle-mexican-grill-cmg/

 

Highlights for the second quarter of 2015 as compared to the second quarter of 2014 include:

  • Revenue increased 14.1% to $1.2 billion
  • Comparable restaurant sales increased 4.3%
  • Restaurant level operating margin was 28.0%, an increase of 70 basis points
  • Net income was $140.2 million, an increase of 27.1%
  • Diluted earnings per share was $4.45, an increase of 27.1%
  • Opened 48 new restaurants

 

 

My eyes are on Apple

 

The news yesterday was filled with how Apple missed earnings estimates.  The stock plunged as much as 8% after trading hours.  Some news headlines even reported iPhone sales slowing.

 

What the… I don’t even…

Jackie-Chan-WTF

 

Aapl

– iPhone revenue is up 59% over last year

– Q3 revenue up 33%

– EPS up 45%

– Operating Cash Flow of $15 BILLION

– Strong start to Apple Watch sales, driving 100% of the growth in their revenue grouped under Other Products.

 

With such strong results, and an EPS growth that some small growth companies can’t even match, I think Apple is looking very domineering now.

 

I bought Apple last month at a price of $132 and was hoping to pick more up at $119.  However, the price is still trading at $124 as of writing.  Guess I have to wait.  For readers who follow analysts estimates or news reports, please be discerning to check the financial statements yourselves and not be fooled by the financial media circus.

 

 

Next week: Priceline, MasterCard, Facebook, LinkedIn…

 

How’s earning season for you so far?

 

 

 With the exception of Apple, GoPro and Chipotle don’t pay dividends.  But other companies do.  Learn how to pick them by going through the Dividend Machines course.  I have written a review about the course here.  If you have already made up your mind,  click the image below to go to the Dividend Machines Course page.  You got 1 day left to decide. 

dividend machines

8 Comments

  1. James

    Getting PayPal soon? 🙂

    Reply
    1. The Bf (Post author)

      Waiting for the initial exuberance to be over first !

      Reply
  2. Lala

    Hi..been following your blog. How do one get around buying US stocks? I finally learnt to buy local ones a few mths back but can’t buy in USD ones…I m using standard chartered.

    Reply
    1. The Bf (Post author)

      Hi Lala, I use standard chartered too. You need to open a foreign currency settlement account in USD first. Then when you buy US stocks , the money in that account will be auto deducted.

      Reply
  3. CM

    Hi,

    GoPro has been beaten down recently because of Ambarella Inc. I want to understand more to see if this is a golden opportunity. How is Ambarella really linked to GoPro? Any thoughts on the recent plunge? And btw, where do you get the GPRO earnings report?

    Thanks,
    CM

    Reply
    1. The Bf (Post author)

      Ambarella makes components for GoPro. GoPro makes up 1/4 the revenue of Ambarella. Ambarella then gave guidance of slowdown in sales of the action cameras and that can be interpreted as being directly related to GoPro. However the slowdown in the next quarter can be explained by seasonality – GoPro’s latest cameras are released in Q2 . So by Q4 sales will most likely slowdown in comparison. I think GoPro is looking very cheap. I got the earnings report from the GoPro investor relations website.

      http://www.fool.com/investing/general/2015/09/03/ambarellas-guidance-doesnt-spell-doom-for-gopro.aspx

      Reply
  4. Lai

    so, any update to this? now that it has dropped so low.

    Reply
    1. Jerry (Post author)

      Hi Peter,

      Hi Lai,
      Sigh. More bad news from GoPro. See this news.

      I am still holding on to the shares. At least the company is doing something to face the reality of the poorer sales. Now we have to see if they can transition into a media company fast enough. I think that would be the key to prove doubters that they are not a one-trick pony.

      Reply

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