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GoPro (GPRO) Over Fitbit (FIT) May Be a Contrarian Investment Choice

Jon Phillip

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semiconductor stocks

GoPro (GPRO), the American manufacturer of action cameras, is currently trading at around $6 per share. With such a share value, it would be surprising to know that the company actually began public trading at $24 in 2014. It saw a rise up to $90 per share thereafter for the next few months. Even though the company had developed its own market, there was soon tough competition within.

The core products were copied in a blink and made available at lower costs. Further, the updated technologies like smartphones with better camera quality created quite a challenge for the company. GoPro soon introduced virtual-reality and a 360-degree camera in order to overcome threats faced. 

Recovery Of The Two Companies Attracting Investment

Similar has been the story of Fitbit (FIT). It was the first ever provider of fitness tracker wireless technology devices. Fitbit was initially traded at $20 per share after going public in 2015. It saw a surge in share prices of up to $40 per share over the following months. Then FIT stock price plunged, currently being around $4 per share. Full-featured smart watches took away the company’s unique proposition. In order to deal with the decline, Fitbit sold fancier trackers and smartwatches.

This year in Q1, things for GoPro seemed to take a turn for better with 20% increase in revenue annually. The year prior, revenue had fallen by 3% following a 27% decrease in 2016 and flat growth in 2017. The Q1 revenue growth was a result of various variables. These variables are:

  • HERO7 Black camera which brings in 90% of the company’s total sales. It saw an increase in demand,
  • The U.S. action camera market expanded market share
  • Higher average selling prices

All these variables resulted in a subscription growth of over 50% annually.

The adjusted gross margin of the company saw a surge of over 10 % to 34.2% annually along with lowered operating costs of 16%. The net loss that stood at $47.4 million prior to these adjustments came down to $10.2 million. These project earnings of $0.25-$0.45 per share (as opposed to a loss of $0.23 per share in 2018) from its revenue increment by 7%-10%.

What’s The Future Hold For The Stocks’ Prices

Things are looking up for GoPro as it further expects better recovery being supported by increased camera shipments and stable prices. Instead of venturing and expanding into other markets, the company now focuses on its core business, locking in customers through GoPro Plus.

Fitbit still, has a lot of battles to win ahead. The rate of revenue fall has been improving – from 26% fall in 2017 to 6% fall in 2018 and then 10% rise in revenue in 2019. But the company still faces tough competition in the market as implied by the company’s falling average selling prices.

The revenue rise could be credited to larger shipments of various devices – Charge 3, Inspire, Inspire HR and Versa Lite- that contributed to two-thirds of the total sales of the company.

Fitbit is hopeful of revenue rise to 1%-4% annually, in spite of the falling ASP. As projected by the company it would continue its downward trend. Fitbit is focusing on increasing the customer base. They’ll provide devices at a cheaper rate as compared to Apple and Xiaomi in order to take back its spot in the market from such rivals.

The company projects an adjusted gross profit margin of 40%, expecting its Fitbit Health Solutions software services to gain more popularity in the market. The loss per share is expected to come down to $0.15 per share as opposed to 2018’s loss of $0.76 per share, as calculated by analysts.

If the two stocks – GoPro and Fitbit- were to be compared, GoPro could come out as a better investment opportunity. GoPro is ahead in the recovery battle with fewer competitive companies while Fitbit has giants like Apple and Xiaomi to fight off to stay in the market.

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What Does The Disney (DIS) Plus, Amazon Deal Mean For Investors?

Jon Phillip

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DIS stocks to buy Disney +

There is no doubt that 2019 and the years beyond are going to be definite by the ‘streaming wars’ between some of the biggest companies in the world. The imminent entry of a behemoth like Disney (DIS) has raised the stakes even higher and on Thursday the entertainment company made another significant announcement.

During the company’s conference call for the fourth-quarter earnings, the Chief Executive Officer of Disney Bob Iger stated that the streaming serving Disney+ is going to be available on Amazon Fire TV.

[MARKET PREVIEW] The $40 Billion Dollar Content Gold Rush

Major Development For Content Providers

This is a major development, considering the fact that Disney had earlier said that the service might not be available on products owned by Amazon due to advertising disagreements.

However, that is not all. Iger went on to state that the service will also be made available on Smart TV manufactures by LG and Samsung. During the conference call, the Disney CEO said, “We’re pleased to announce partnerships with Amazon Fire [TV], LG, and Samsung devices.”

It is a major development for a streaming service that is trying to capture market share quickly from Netflix. Availability on Amazon Fire makes it accessible to a far bigger pool of potential customers. That is why this particular announcement is so important.

[MARKET PREVIEW] The $40 Billion Dollar Content Gold Rush

Where Does This Leave Netflix?

There are certain added benefits of the availability of Amazon Fire TV. The Disney+ app has the ability to sync with the built-in search engine on Amazon. Therefore, users will be able to request particular content by stating it to the personal assistant Alexa.

It goes without saying that the development has come as a big boost for Disney+. It’s ahead of the much-anticipated launch on November 12. The price of the service sits cheaper than Netflix’s cheapest package. It’s also going to be a highly cut-throat battle between the two companies. That said, other services are also coming soo. The ‘streaming wars’ are going to be the theme of 2020.

[MARKET PREVIEW] The $40 Billion Dollar Content Gold Rush

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Biotechnology

Biotech Stocks To Watch This Week

A. Lawrence

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make money with penny stocks biotech

With Biotech Continuing Higher, Are These Buys Or Sells This Week?

Biotech penny stocks have proven to be one of the best sectors for investments. That’s as far as the stock market is concerned. If experts are to be believed then it may continue to be among the best options in the years to come. That being said, it does not mean that investing in biotech stocks is an easy ride.

An investor needs to conduct a lot of research and also watch the market closely. Similar to other high-risk industries, volatility is a big factor. At any given point in time, a bad report could send stocks plummeting. Similarly, one good DA report can trigger a monster move. Here is a quick look at a few biotech penny stocks which made moves recently. Will they be better stocks to buy or avoid this month?

GT Biopharma Inc. (GTBP)

This company’s stock made new 3 month highs on October 22. GT Biopharma (GTBP) announced that its solid tumor targeting TriKE killed a non-small cell lung cancer tumor cell. This is a major development news for the company’s TriKE platform because the market potential for non-small lung cancer is big.

biotech stock to watch 2019

Non-small lung cancer accounts for 84% of all lung cancer diagnoses. Shareholders clearly felt this way, which may have been why GT Biopharma’s stock shot up by more than 25%.

There could be another potential reason why stockholders are reacting this way to the recent news. Earlier in October, the company announced that the design of HIV-TriKE was able to successfully target the HIV-Env protein.

This would allow the company’s TriKE technology to eliminate replicating HIV infected cells. Because of the success of TriKE with lung cancer cells, investors might feel that the company will be able to successfully destroy HIV cells. For more on GT Biopharma’s novel treatment pipeline and progress, click here.

WHAT CURING CANCER & HIV COULD MEAN FOR THIS COMPANY, ITS INVESTORS & THE WORLD!

Pieris Pharmaceuticals (PIRS)

The first stock to consider in the biotech sector with regards to the latest movements is that of Pieris Pharmaceuticals Inc (NASDAQ:PIRS). Back on November 5, the company announced that dose escalation monotherapy data with regards to one of its products is going to be presented at the Immunotherapy of Cancer (SITC) Annual Meeting that is going to be held at National Harbor, Maryland.

stock_price_mental

The medicine in question is PRS-343, which is meant for treating HER2-positive solid tumors. It goes without saying that it is a positive development and the Pieris stock has reacted positively to the news as well. Since the news broke, the stock has gained as much as 10%.

WHAT CURING CANCER & HIV COULD MEAN FOR THIS COMPANY, ITS INVESTORS & THE WORLD!

Foamix Pharmaceuticals (FOMX)

The other biotech stock that has been on a tear for much of the week is the Foamix Pharmaceuticals Ltd (NASDAQ:FOMX) stock. Back on October 18, the company announced that one of its products known as AMZEEQ has been approved by the United States Food and Drug Administration. The medicine in question is a topical foam and is meant for treating inflammatory lesions in both adults as well as pediatric patients, who are older than 9. That was the initial trigger for the rise in the stock price.

Last week, the company also published a peer review of the long term open-label safety of AMZEEQ and that proved to be the trigger for the rally. During the course of the week so far, the Foamix stock has soared by as much as 60%. This is a stock that should definitely be tracked by investors.

WHAT CURING CANCER & HIV COULD MEAN FOR THIS COMPANY, ITS INVESTORS & THE WORLD!

biotechnology stocks to buy

Pursuant to an agreement between Midam Ventures LLC and GT Biopharma (GTBP), Midam has been paid $100,000 for a period from October 1, 2019 to November 15, 2019. We may buy or sell additional shares of GT Biopharma (GTBP) in the open market at any time, including before, during or after the Website and Information, to provide public dissemination of favorable Information about GT Biopharma (GTBP). Click Here For Full Disclaimer.

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Stock Price Newsletter – November 11, 2019

Joe Samuel

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biotech stocks to watch

Streaming Stocks Take Aim At Winning The Content War

Over the past half a decade or so, the world of entertainment changed dramatically with the emergence of video streaming service Netflix Inc (NASDAQ: NFLX). As cord-cutting grew, Netflix’s continued to corner more and more of the streaming market. Here is a look at a few tech stocks to watch that could be set to prove themselves on this new battlefield.

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3 Defense Stocks to Watch in November

Over the years it has become abundantly clear that defense spending is going to rise every year and hence, defense stocks have naturally emerged as some of the safest investments in the market. However, the current unstable geopolitical situation in different corners of the world could lead to even more defense spending, if a Bank of America analyst is to be believed.

See For Yourself


3 Popular Biotech Stocks To Watch in November

Over the years, the biotech sector has been a bit of a gold mine when it comes to stocks and thousands of investors have been able to make significant profits by backing the right companies. The innovative solutions and technical advancements that have been brought into the sector by different companies is another factor behind the continued growth.

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