The rise and fall of GoPro: From $11 billion to penny stock

The action camera that owned 67% of the market and hit $11B valuation — now a penny stock burning $100M cash annually.

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By The Numbers

$11B

valuation at peak

67%

market share at peak

$430M

loss in 2024 alone

What They Nailed Early

Solved a real problem for adventure enthusiasts: capturing action footage without professional gear. Perfect timing with YouTube's rise created free viral marketing as users shared their GoPro videos. Hit nearly $1B revenue by 2013 while staying profitable.

What Changed

Smartphones evolved to include 4K video and image stabilization, eliminating the need for casual users. Cheap Chinese knockoffs at one-third the price attacked from below. GoPro responded too late with the confusing Hero4 Session priced at $399—same as the full model—alienating retailers and customers for the first time.

Where it Landed

Stock under $1, valued at less than $200M despite $1B+ in sales. Lost over half its market share, down from 70% to below 30%. Burned $100M cash in 2024. A shadow losing money.

The Principles

When your product becomes a feature, act early. GoPro saw smartphones and knockoffs coming but missed the window to defend their franchise.

Desperation bets rarely work. The drone ($375M loss) and media division failures distracted from the core problem: protecting the camera business.

Tech disruption cuts both ways. The same digital revolution that built GoPro made it obsolete when phones caught up.

Builder's Takeaway

If you're riding a tech wave, watch for:

•

Your product becoming a smartphone feature—plan the pivot before it happens

•

Confusing pricing that cannibalizes your own lineup (Session at $399 mistake)

•

The window to defend closes fast—years before the crisis shows up

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