I looked at GoPro $GPRO in December 2021 and since then the stock crashed by over 50%. At the time, I said that GoPro was overvalued. Is it at a better price today?
If we look at the balance sheet of GoPro, it is one of the rare tech stock with a positive net current asset value. The stock is trading near its book value and it has enough cash to repay all its debt. This is a great balance sheet but the main reason why the company was able to generate so much cash was from tax benefits.
If we look at the operations, the company is hardly able to maintain profitability and revenues have been stagnant over the past 5 years. GoPro has been shifting its business from retail dependent to a subscription one on their own website. This can potentially improve margins but we don't know if they will succeed in the transformation.