GoPro soars, leads Silicon Valley stocks as CEO outlines new revenue streams

GoPro soars, leads Silicon Valley stocks as CEO outlines new revenue streams

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GoPro led Silicon Valley stocks on Wednesday as shares rose 7.18 percent. 

The stock (NASDAQ: GPRO) climbed after CEO Nick Woodman appeared on Bloomberg TV on Tuesday to talk about new revenue streams for the company, which last month said it’s exiting the drone business.

Woodman also didn't rule out the possibility of GoPro being acquired, a prospect that surfaced last month amid reports that it had hired investment bank J.P. Morgan to explore a sale.

 

GoPro led Silicon Valley stocks on Wednesday as shares rose 7.18 percent. 

The stock (NASDAQ: GPRO) climbed after CEO Nick Woodman appeared on Bloomberg TV on Tuesday to talk about new revenue streams for the company, which last month said it’s exiting the drone business.

Woodman also didn't rule out the possibility of GoPro being acquired, a prospect that surfaced last month amid reports that it had hired investment bank J.P. Morgan to explore a sale.

 

 

GoPro CEO Optimistic After Exiting Drone Business

 

 

 

 

"My job as CEO of GoPro is to look for opportunities for us to realize our vision and to create as big an opportunity for our investors as possible. If that’s as a standalone, independent company that’s terrific, but if we can achieve that more easily and quickly with a partner, we’d jump at the chance to look at the opportunity," he said in an interview with Bloomberg’s Selina Wang at the Goldman Sachs Technology and Internet Conference.

Woodman declined to comment on whether GoPro is currently talks with any potential acquirers.

Last month, GoPro said it would stop making its Karma drone and lay off more than 250 employees, or about 20 percent of its workforce, after weak drone sales.

In 2018, GoPro is focused on three primary areas, Woodman said: Its camera, app and cloud businesses.

“We’re a smaller, more focused business and we have a great leadership team," he said.

 

The company is particularly focused on growing its paid subscription service, Plus, he said. The service offers free cloud video backup and free replacement of GoPro cameras, even when a customer is responsible for breaking it. The service currently has about 130,000 paying subscribers, Wood said, “and we’ve only really turned on the marketing."

Other top performers among Silicon Valley stocks on Wednesday:

  •         Lam Research Corp. (NASDAQ: LRCX) gained 6.06 percent.
  •         Electronics for Imaging (NASDAQ: EFII) jumped 5.63 percent.
  •         Align Technology (NASDAQ: ALGN) bounced 5.14 percent.
  •         Synaptics (NASDAQ: SYNA) closed up 5.33 percent.

Most Silicon Valley stocks were up Wednesday, as the Dow Jones Industrial Average gained 253 points and the S&P 500 closed up 1.34 percent. The exceptions among local stocks were:

  •         Essex Property Trust (NYSE: ESS) slipped 1.54 percent.
  •         Lumentum Holdings (NASDAQ: LITE) inched down 0.78 percent.
  •         Viavi Solutions (NASDAQ: VIAV) declined 0.51 percent.
  •         Tesla (NASDAQ: TSLA) slumped 0.42 percent.
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The Bloomberg Silicon Valley High Tech Index of the region's 13 biggest tech stocks gained 2.25 percent, led by Applied Materials (NASDAQ: AMAT), up 4.86 percent; Facebook (NASDAQ: FB), up 3.68 percent; and Advanced Micro Devices (NASDAQ: AMD), up 3.57 percent. 

Apple (NASDAQ: AAPL) and Google parent Alphabet (NASDAQ: GOOG) gained 1.84 percent and 1.76 percent, respectively.