GoPro is a painful “reverse unicorn”

GoPro

The “reverse unicorn” is a painful-sounding position, even for a company that celebrates daredevil stunts. GoPro once belonged to the much-hyped breed of “unicorn” private start-ups valued at more than $1 billion. After its initial public offering in 2014 and a string of bad results… the action camera company became a member of an even more select club: ex-unicorns worth less than $1 billion as public companies. The horn was removed for good reason. GoPro over-promises, under-delivers, misprices products… Yet until GoPro starts bleeding cash, it seems unduly pessimistic to value it like a dying company. In fact, cash rose to $474 million at the end of the year, almost half its market capitalisation, and GoPro carries no debt…  It is far from certain that, shorn of its unicorn’s horn, the camera maker is headed for the knacker’s yard.

 

Lex.

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