GoPro Inc.GPRO seems to be leaving no stones unturned to improve its market position and put itself back on the growth track. Recently, the company disclosed that it has penned a deal with legendary Hollywood director, Ridley Scott, to provide its camera for the making of his upcoming movie The Martian , which is opening worldwide today.
This is a one-of-a-kind venture for GoPro and marks the debut of its cameras in this domain, representing the biggest cinematic integration of these cameras. 20th Century Fox's The Martian is a science fiction movie based on the survival story of an astronaut presumed dead and left behind on Mars by his fellow colleagues. Director Ridley Scott has positioned GoPro cameras as the sole companion to the lead character Mark Watney, thus showcasing a creative perspective of life on Mars and drawing audience closer to the character. Initially intended to be used as a prop on the set, GoPro cameras ended up being the major part of the storyline.
We are encouraged with this latest development as GoPro continues its journey of discovering new dimensions for the usage of its highly advanced cameras. Presently, the company enjoys the leading position in the action cameras market with 47.5% share, followed by ION and Sony SNE Action Cam, which hold 12% and 8% market share, respectively, according to Market Realist. Moreover, reports of Futuresource Consulting suggest that the action cameras market is expected to grow steadily till 2019.
Additionally, this is a major step by the company on its transformation from the 'camera maker' to 'content maker'. In relation to that, this week, GoPro stated the advent of GoPro Channel on 'Watchable' - the cross-platform video service of Comcast Corporation CMCSA . With this first multi-channel video programming distributor deal, GoPro will be able to offer its immersive and high-definition content to viewers on various platforms. Such initiatives could pave the way for positive growth for this Zacks Rank #4 (Sell) stock.
Troubled by the ongoing sluggishness in the U.S. wearable camera market, especially action sports cameras, GoPro has been witnessing a recent slide in its shares. Over the past six months, the company's shares have fallen 32%. Also, in recent times, the company projected that its fourth-quarter revenues will account for mid-30s to low-40s percent of full-year sales. This is particularly disappointing, considering the company usually garners maximum revenues in the fourth quarter, driven by the holiday season frenzy.
A better-ranked stock in the industry include Skullcandy, Inc. SKUL that holds a Zacks Rank #2 (Buy).