5 Best Stocks to Buy According to David Einhorn’s Greenlight Capital

2. GoPro, Inc. (NASDAQ: GPRO)

For Q1 the EPS was $0.07 in line with the estimates, while revenue was up 70.9% YoY to $204 million. The hedge fund chaired by Einhorn holds close to 2.7 million shares in the company worth over $23 billion. Out of the hedge funds being tracked by Insider Monkey, Iridian Asset Management is a leading shareholder in GoPro, Inc. (NASDAQ: GPRO) with 6.14 million shares worth more than $71 million.

At the end of the first quarter of 2021, 36 hedge funds in the database of Insider Monkey held stakes worth $395 million in GoPro, Inc. (NASDAQ: GPRO), up from 28the preceding quarter worth $339 million.

In its Q4 2020 investor letter, Roubaix Capital LLC, an asset management firm, highlighted a few stocks and GoPro, Inc. (NASDAQ: GPRO) was one of them. Here is what the fund said:

“Companies like GoPro (GPRO) should benefit from the consumer rebound, but also have their own unique drivers of value over the next 2+ years. In the case of GPRO, the company launched its newest action camera, the GoPro9, under the umbrella of a new business model. The company offers a discount on the camera when customers purchase a subscription agreement that comes with additional services and benefits. The uptake of the subscription has been strong to date and offers the company a line of sight to a higher margin and more predictable revenue stream. The stock’s low double digit earnings multiple remains undemanding. We have seen this type of transformation play out in numerous situations in software, hardware and even retail companies such as RH. We see GPRO following suit and expect a return to travel later this year to be another reason for consumers to buy a new camera as they head back out on vacation.”