The Motley Fool covered GoPro’s stock collapse and their continued drop in stock. In its article, it cited three lessons that investors can learn from that dramatic collapse. Two of the lessons were related to innovation and technology. First, a brand can only get you so far. Brand awareness doesn’t equal brand loyalty. Second, if a product looks like a niche product, it probably is. What does the data say about this two items?
Using ktMINE Search here’s what GoPro owns today:
- 20% of assets are in Photography and Optical Equipment including Cameras, Camera Housing and Lense Covers.
- 17-18% are in Television around Cameras, Detection Devices for Camera Systems, and Chip and Image Sensors for Data Compression.
- Less than 8% are assets in Photograph, Protective Lense and Adhesive Camera Count.
Now, take a look at where GoPro might be investing and inventing. Where are they investing in their future? Eight assets were investments in the television space. These are old technologies that possibly didn’t get their patents approved. This shows GoPro is still pushing the camera video business.
Instead of having patents as a part of their innovation profile the company is spending significant time on trademarks. This goes against the lessons mentioned in the Fool. If a brand only goes so far and doesn’t equal purchase then The Motley Fool was right that the price of the stock should go down. GoPro is focusing on branding relative to disruptive technologies and doesn’t have an innovation portfolio.
The ktMINE on the Fly Series presents quick snapshots of companies’ portfolios and investments. Further analysis is needed.