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Good day subscribers thank you so much for joining me today i am jeremy this is the financial education channel and today we’re talking about gopro is not fitbit so many times people like to compare gopro and fitbit or fitbit’s gopro and gopro spin they’re like the same company just two different companies and you know if one stock goes down the other stock should go
Down one stock goes up the other stuff should go up really guys the reason some people like to compare those two is honestly because they’re both hardware companies mainly and because they both i peeled around the same time they had hud ipos their stock shop and then their stocks have shot down so a lot of people love to compare those two and put those two in the
Same set and here today guys i’m here to give you eight points on why they should not be compared well they’re two very very very different companies going to very very different ways guys so we’re going to talk about all this and i’ll give my my case on why they should not be compared at all because a comparison between these two in 2017 is pretty ignorant because
It’s just somebody that really doesn’t understand the two different business models in the places the two companies are going guys so this video thumbs up if you enjoy guys and let’s just get right into this so number one thing the main difference number one main difference here is gopro back in october so three months ago they released their first flagship product
In two years in two years fitbit has continuously you know released a flagship product sometimes they release two flagship products in the same year sometimes three so they’ve been releasing flagship products gopro hadn’t released a flagship product and it was laughter they did was around september october 2014 we’re talking about a long time ago guys so one of
The reasons gopros numbers hurt so bad in 2015 and 2016 was because they didn’t have a flagship product we hadn’t had a bunch of product in such a long time so the end of 2015 that christmas quarter was really hurt in 2016 that the entire 2016 year was hurt very badly because they didn’t come out with a new flagship product everybody already had two gopros that
Really needed to go pro so the amount of sales they got from the channel was very muted and i mean they still did good numbers i think they just somewhere they’re going to post somewhere around 1.3 1.4 billion dollars it’s nothing that’s need matt or anything but still that’s not even close to what it could be if they would have released a flagship product in 2016
Well and what i mean 2016 i mean the end of 2015 so that way sold through 2016 so that is a huge huge huge thing guys i mean imagine if apple didn’t release a flagship smartphone one year what do you think would happen apple sales if apple decided next year we’re not going to release a new iphone imagine what that would happen to apple sales i can guarantee you
They would be down dramatically apples actually a lot more diversified company than a gopro is for instance apple has a lot of product line doing a lot of things like you guarantee you if apple decided we’re not going to come out with a new iphone next year there’s going to be no 7s or no hibernate sales will be down substantially i would say 20% plus it’s not 30%
So that’s for old technology if you don’t come out with a new product every year you kind of become irrelevant it’s like youtube will only post a video once a month or whatnot you kind of like forget about them they kind of become irrelevant so you know that’s just the latest some ministries you just have to release products every year in my trunks you have to do it
It’s a month guys so that was a huge mistake and gopros part but doesn’t mean that’s a huge difference between gopro and fitbit tip it has been releasing a flagship product and their sales are now starting to slow quite a bit we saw the last quarter our week it was in this quarter they’re going to report here it could actually report very negative sales here on the
Year so we’ll see i’m not going to make my judgement on that yet because we got to see the numbers before they come out so that’s number one number two gopros going into huge new markets that are haven’t that have very very strong growth and very not very good competitors in those markets so i’m speaking out specifically the karmas room going into the drone market
Which the drone sales are just increasing at ridiculous in the united states worldwide everywhere drone rates are becoming adopted at such a high volume we’re talking 100-plus percent growth and there’s one name who’s or serious competitor in that space in dji dji and that’s it that’s it and my new dji is not even a household name as known by people that like me
That fly drones are really into tech but outside of that people have no clue what a dj hi drone is or what dji stands for or whatever i don’t even know a dji stands for what the heck does it stand for and i have a drone sitting right there from the floor so but yeah they’re going into a space that’s that that’s experiencing phenomenal growth with a very profitable
Potential product in the karmas room the handheld stabilizer there’s really crappy competitors there’s no name-brand competitors in that space and that’s a very rapidly growing market there the whole handheld stabilizer you know so you can have your camera and you can be running on the beach or running up a trail and have it all your footage stabilized so you can
Actually do stuff without the camera going up and down and all shaky and whatnot so they’re going into some phenomenal fast-growing new spaces that they never had products in before where’s it fit there ii have nothing going new for them they have absolutely nothing going into new new categories that are super fast growing they’re in the smartwatch game and then
The fitness band game the same game they’ve been in so that’s a huge difference there between gopro and fitbit and where their companies should be going in the future number three fitbit has some major competitors in apple and samsung gopro has competitors absolutely they have canon and nikon and sony and a lot of different competitors right those competitors are
Joke compared to apple and samsung apple and samsung the amount of profits of companies make the amount of coolness factor those companies have the amount of things they can do or just on a whole other level than basically any other company out there guys so if it’s competing and how in a game that’s so hard to win and when someone gets an apple watch do you think
They’re ever going to go back to a fitbit if they you can had a fitbit in the first place as the question you asked yourself in my opinion no but that’s just my opinion so don’t take that for what it is but at the same time acknowledge that fitbit has some serious serious competitors in apple and samsung those are no joke and they’re competing directly with fitbit
I wouldn’t want to compete if apple came out with a in action camera i would be very scared the gopro shareholder at apple came out with a an awesome drone or something i would be like oh boy this is versus aren’t going to be fun so competing as apple is not fun guys and competing against samsung that’s not fun stuff it’s hard to beat those two companies number
Four fitbit has a problem gopro had back in 2015 where fitbit has too many products at too many different price points that it confuses new consumers to the products i remember i went out on when i was going christmas shopping i went to target just to see like fitness and kind of get an idea of what fit that’s rely on a thing about maybe getting one for my wife or
Something and i got there in the display and there was like eight or nine like different watches of bands and i’m like well what does this one do versus this one and and this one’s this price but why is this one this price versus this one seems like it has more features as cheaper and it it was so confusing that i didn’t even get one and so that’s a huge issue when
You have too many products at too many different price points and i know for some companies it seems like it’s a smart thing to do a lot of times it just confuses consumers gopro made this huge mistake in the christmas quarter 2015 going in 2016 they basically had six different camera models out they had the hero4 black they had the hero4 silver that hero4 session
They had like a regular session they had a $299 camera they had a $109 camera and they had a $129 camera that make six or 70 different models of camera and what it did is it turned off consumers because consumers will go to the display maybe like well what should i get my spouse or my my son or my daughter is so many it what in then they end up getting nothing is
Getting nothing so you got to watch price points and that’s a huge problem in my opinion fitbit has right now they got too many products too many different price points i don’t even know what the main model the fitbit is is a blade eye or is it the alto or something like that i don’t know so it’s a big issue there number 5 this is a good thing for fitbit versus
Gopro if it was profitable and very profitable in 2016 they didn’t do what the number they wanted to do they didn’t do the numbers analysts expected but they were still very profitable in 2016 gopro lost a huge amount of money in 2016 a very unprofitable year for gopro so gopros are in a place now where they have to prove themselves that they can be profitable in
2017 improve themselves they can be even more profitable in 2018 and really just those profits rolling back in for gopro where’s fitbit honestly they’re already profitable now question is are they gonna stay profitable most kinds of things but at least that wait now they’ve proven they can be profitable they proved in 2016 as the big advantage for our fitbit and a
Difference from gopro number 6 sibbett has a phenomenal balance sheet gopro has a good balance sheet gopro youth to have a phenomenal balance sheet before they lost a crap ton of money in 2016 because they didn’t have a new flagship product they had way too many employees blah blah blah so fitbit has a phenomenal balance sheet so if they go through some tough times
Here over the next year or two i wouldn’t worry about their financial business model just from the standpoint of they have a phenomenal balance sheet now the question is if they do have some troubles can they get back to growth at some point that’s that’s the big question but the balance sheet is really really good their cash flow that their investment loaded
And they have virtually no depth so their balance sheets phenomenal so that’s something as a fitbit shareholder at least you can you know feel comfortable that if the company does have a really tough 2017 which sums a lot of people think they’re done they have a very good balance sheet that they should at least be able to get to through 2017 like nothing number
7 gopro is going after a smaller more focused approach 2016 gopro is let off a lot people from their company which i think is you know i hate to see people laid off because i just hate to see it but at the same time it’s really needed and it was really needing that gopro because they were too unfocused on too many things sometimes a smaller more fit company is
A better run company because you have less things going on to worry about an executive team doesn’t have to be worrying about this and that gopro has this entertainment vision business they had the the professional side of the business that they were trying to build out and was like too much going on they have other avenues of of some other services and whatnot
That weren’t really bringing in any money they were pouring a lot of money into their youtube channel which wasn’t really necessarily making them any money come back to them so gopro gopro was spending way too much money they were very unfocused and and on top of this this is the kind of as an entrepreneur type point i have here guys i wonder i’m always talking
Entrepreneurs i’m talking about this i’m talking about being profitable i always try to mention that in most of my business videos be profitable you know you got to figure out how to be profitable don’t buy stuff if it’s not necessary and those kinds of things in go proof case is a company that last year and we’ll see what the numbers are here for q4 but they’re
Expected to probably bring in 1.3 to 1.5 billion dollars in revenue right you’re bringing that type of money and they have phenomenal margins on the products we’re talking 40 50 % margins on most of their accessories and most their camera products they make great margins and you bring in that kind of money and you tell me you can’t just make a hundred million 200
Million three hundred million dollar profit are you freaking out your mind that’s a finding that you’re spending way too much money on other garbage and way too much money on other people’s salaries and way too much money on trying to expand this business over here and do this and do that and way too much money just trying to do way too many things that aren’t
Really bringing you the profits in the end that’s what i see with gopro there so i’m happy they’ve kind of gone the you know to this more fit approach and we’ll see in 2017 i hope they execute a lot higher level now they’re more focused and also it like i said it they’re saying when you make that kind of money when you have that type of revenue and you make the
Type of margins they make on the products you’re just spending way too much money on people and ever crap trying to build out for the future that didn’t really bring any money in the end guys so that’s a big thing that’s number seven and the last one number eight and this is overlooked by pretty much the entire investment community gopro they sell the cheaper they
Sell the fries they sell the soda they sell the cookie now what the heck do i mean by that gopro when you buy a gopro you have like a million accessories you can buy along with that gopro so when you buy the gopro you can also buy this and buy that and buy this and buy that when you buy a fitbit you pretty much bought a fitbit and that’s it now they have some other
Bands and whatnot i don’t even count that that’s like not even that’s just ridiculous when you buy a gopro go to any local best buy store you’ll see the entire gopro section loaded with accessories different accessories that you can add on to your gopro so when you become a gross gopro customer when you buy a gopro camera they’re also selling you like i said the
Fries which are the accessories and the drink and the cookie and all that kind of stuff it’s like it’s like it gopros like mcdonald’s and fitbit is like a burger shack that only sells burgers and doesn’t sell you a drinks or doesn’t sell you fries or doesn’t sell you a dessert or anything you know it’s hard to make that business model because once you sell that
That item that customer it might be year as we find before they buy a new one if they ever buy a new one never mind if they switch to another company like an apple or samsung to an apple watch or something like that so that’s a huge huge thing that a lot of people don’t even pay attention to and now gopro has its two biggest accessories basically they’ve launched
Ever in the company’s history the karma grip which i think the sales are going to be actually really good in 2017 for that product i think that’s going to take out a lot of people by surprise because expectations are insanely low for the karma grip is a $299 product it’s a product that i’m absolutely absolutely going to buy this month it’s a product i see a lot of
People that have gopros and want that type of next level up experience buying they also have the drone coming out so the two very expensive accessories of the $799 drone the 299 or handheld stabilizers to products that honestly it can bring in gopro a lot more money a lot more money in the future in fitbit kind of stuck there with selling bands so i hope after
You seeing these eight points guys you can see that these two companies do not deserve to get compared together there’s two totally different companies going to very different places with two very different visions for the future guys so i hope you’ve seen that today and i kind of wanted to do this video for a while because it just frustrates me that if people
Just ignorantly say all sipping gopros like to the same companies they’re not at all and based upon the fact these upon the things we’re coming in a future here you’re going to kind of see that these are two very different businesses guys i hope you enjoyed this video today leave it a thumbs up if you did if you just came across this channel you may not subscribe
That you may want to we talk personal finance in the channel we talk entrepreneurship i’m a business owner you’re away a lot of my business tips for this channel and we also talk to stock market how to be a successful investor of some fun videos like this every once in a while thank you for watching guys and have a great day
Transcribed from video
Gopro is NOT Fitbit By Financial Education
