GoPro (GPRO) has been one of the strongest performing stocks since it went public, having gained 140%, but with the holiday season coming, shares may see another leg up, as consumers see this and other wearable technology as the big holiday gifts to give and receive.
Pacific Crest Securities analyst Brad Erickson noted that the GoPro Hero 3+ camera "crushed it" on Black Friday, selling out in many instances. "We detected particularly strong demand for the discounted Hero 3+ Silver Edition, which was being bundled with various combinations of memory cards, accessories, mounts and/or additional gift cards depending on the retailer, for $250 (normal camera-only price is $300)," Erickson wrote in a note. "Several stores we visited had sold out of their allotment on Thanksgiving evening, which was encouraging."
San Mateo, Calif.-based GoPro, which sells both Hero cameras as well as software and is increasingly trying to become a content company, recently announced the Hero5, an updated version of the Hero 3+. Though Erickson noted that the Hero 4 was found to be in stock at a lot of places, with ample inventory, the analyst stated this was likely "more of a case of being extremely well prepared for a busy holiday weekend rather than any disappointing sell-through."
The company recently posted third-quarter earnings that were better than expected, and issued guidance well ahead of consensus, due in large part to the pending surge in holiday sales.
GoPro ()GoPro earned an adjusted 12 cents a share on revenue of $280 million, better than the 8 cents a share and $266 million in revenue analysts had expected.
The company said it expects fourth-quarter revenue to be between $550 million and $580 million, compared to the $503 million analysts surveyed by Thomson Reuters expect.
With consumers leading more active lifestyles and incorporating technology into their lives, wearable technology is also likely to get a boost, most notable Fitbit.
Fitbit, which recently unveiled three new fitness bans (Fitbit Charge, Fitbit Charge HR and Fitbit Surge) was also a big beneficiary on Black Friday. The company cut the price of its older Fitbit Flex to be between $70 and $80, which helped drive adoption. Erickson noted, "This contrasts with Garmin's vivofit demand, in our view; we found only a modest uptick in sales from the higher Black Friday store traffic."