GoPro Inc. (GPRO) Falls on Apple Inc. (AAPL)’s New Patent News

Apple Inc. (NASDAQ:AAPL) being granted a patent for a wearable camera could mean an end to GoPro’s dominance of the  action camera space as competition is expected to be rife, going forward. During an interview on CNBC, Dougherty & Co Research analyst, Charlie Anderson, reiterated that GoPro Inc. (NASDAQ:GPRO)‘s high valuation could be under threat with the entry of more players in the space.

Apple is reported to have filed for the patent in 2012 a year from which GoPro is believed to have been selling millions of cameras annually, according to the analyst. Should Apple Inc. (NASDAQ:AAPL) decide to venture more into the action camera business then GoPro’s market share could be affected as push for market share heats up.

The analyst, on the other hand, maintains it might be early to start judging GoPro Inc. (NASDAQ:GPRO) based on the new Apple Patent.

“What they are really describing here is a way to remotely control the video camera on the iPhone; is kind of how I read it. […] There is a detailed drawing of a watch in the patent filing, For example, you can use your Apple Inc. (NASDAQ:AAPL) Watch to record remotely from your iPhone. You can imagine a scenario where you will use your iPhone and then you will be several feet away and you will control it over your watch. […],” said Mr. Anderson.

The biggest concern for investors of GoPro is whether the 12% decline experienced during the trading session will continue to weigh in on the stock? It would be interesting to see what Apple intends to do with the new patent.

“When you have that kind of valuation in multiples things can compress very fast, when there are competitor’s fears. The second thing, you do have the loss of expiration that is coming on February 17 and so, a thing we always see ahead of the lock up is that the shares a little bit jittery any little data point can cause a bit of a rush fire; appears to be what happened today,” said Mr. Anderson.

The threat of a new rival especially of Apple Inc. (NASDAQ:AAPL)’s caliber is believed to have been the driving force behind many investors resorting to going short on GoPro Inc. (NASDAQ:GPRO). The next big event, which could weigh in on the stock is the expiration of lockup period which currently bars insiders from selling the stock.

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