In 2014, GoPro had it all.
Worth $10B. Crushed every competitor. $2B in sales.
Today? They lost $9.8B. Stock fell 99%. Analysts predict bankruptcy in just months.
All because of ONE fatal decision.
Here's the story of GoPro's biggest business mistake (& how to avoid it): 🧵
Worth $10B. Crushed every competitor. $2B in sales.
Today? They lost $9.8B. Stock fell 99%. Analysts predict bankruptcy in just months.
All because of ONE fatal decision.
Here's the story of GoPro's biggest business mistake (& how to avoid it): 🧵
Picture this:
2014. GoPro stock hits $93.85 per share.
Just 4 months after their $24 IPO, they were worth $11 billion.
Revenue was exploding. They owned 67% of the action camera market.
But that same day, CEO Nick Woodman made a decision that would destroy it all...
2014. GoPro stock hits $93.85 per share.
Just 4 months after their $24 IPO, they were worth $11 billion.
Revenue was exploding. They owned 67% of the action camera market.
But that same day, CEO Nick Woodman made a decision that would destroy it all...
The decision?
Going on the biggest spending spree in tech history.
Within 18 months, GoPro doubled their workforce from 800 to 1,600 employees.
R&D spending exploded to $358.9 million in 2016.
But here's the kicker...
Going on the biggest spending spree in tech history.
Within 18 months, GoPro doubled their workforce from 800 to 1,600 employees.
R&D spending exploded to $358.9 million in 2016.
But here's the kicker...
Woodman gave himself a $284.5 million stock package in 2014.
For context: GoPro's entire profit that year was only $128 million.
His single bonus was 2.2x larger than the company's total earnings.
That should have been the first red flag...
But Woodman wasn't done spending.
For context: GoPro's entire profit that year was only $128 million.
His single bonus was 2.2x larger than the company's total earnings.
That should have been the first red flag...
But Woodman wasn't done spending.
He launched two massive side projects:
• A media division (hired HBO and Hulu executives)
• A drone business (the Karma)
Both seemed logical. GoPro content was going viral. Drones needed cameras.
What could go wrong?
Everything.
• A media division (hired HBO and Hulu executives)
• A drone business (the Karma)
Both seemed logical. GoPro content was going viral. Drones needed cameras.
What could go wrong?
Everything.
The media division burned through hundreds of millions before being shut down in 2016.
The Karma drone? Even worse.
It kept losing power mid-flight and crashing.
Total cost: $376 million before they gave up in 2018.
The Karma drone? Even worse.
It kept losing power mid-flight and crashing.
Total cost: $376 million before they gave up in 2018.
Meanwhile, something dangerous was happening to their core business.
Smartphones were getting better cameras.
The iPhone could now shoot 4K video.
Competitors like DJI and Insta360 were stealing market share.
But GoPro was too distracted by shiny new projects to notice...
Smartphones were getting better cameras.
The iPhone could now shoot 4K video.
Competitors like DJI and Insta360 were stealing market share.
But GoPro was too distracted by shiny new projects to notice...
The numbers tell the brutal story:
Q4 2015: Revenue dropped 31% year-over-year
Q1 2016: Guidance cut by 50%
Hero4 Session: $57 million inventory write-down
Every warning sign was flashing red.
But Woodman kept spending...
Q4 2015: Revenue dropped 31% year-over-year
Q1 2016: Guidance cut by 50%
Hero4 Session: $57 million inventory write-down
Every warning sign was flashing red.
But Woodman kept spending...
By 2018, reality hit hard.
GoPro's market share collapsed from 45% to 28%.
They laid off hundreds of employees.
Shut down failed divisions.
Woodman's salary was cut to $1.
But it was too late...
GoPro's market share collapsed from 45% to 28%.
They laid off hundreds of employees.
Shut down failed divisions.
Woodman's salary was cut to $1.
But it was too late...
Today, the devastation is complete:
Stock price: $0.59 (down 99% from peak)
Market cap: Only $93 million
2024 loss: $432 million
Bankruptcy probability: 47%
A company that once dominated an entire industry is now worth less than a small startup.
Stock price: $0.59 (down 99% from peak)
Market cap: Only $93 million
2024 loss: $432 million
Bankruptcy probability: 47%
A company that once dominated an entire industry is now worth less than a small startup.
So what was the fatal decision?
It wasn't the IPO. It wasn't the competition.
It was losing focus.
The moment GoPro stopped obsessing over their core product and started chasing shiny objects, they sealed their fate.
It wasn't the IPO. It wasn't the competition.
It was losing focus.
The moment GoPro stopped obsessing over their core product and started chasing shiny objects, they sealed their fate.
Here's the lesson every entrepreneur needs to understand:
Success isn't about doing more things.
It's about doing the RIGHT things better than anyone else.
GoPro forgot this. They paid the ultimate price.
Success isn't about doing more things.
It's about doing the RIGHT things better than anyone else.
GoPro forgot this. They paid the ultimate price.
But there's a deeper truth here...
While GoPro was building a media empire, they forgot something crucial:
People don't buy from companies. They buy from people.
The most successful brands today aren't built by corporations.
They're built by individuals with compelling personal stories.
While GoPro was building a media empire, they forgot something crucial:
People don't buy from companies. They buy from people.
The most successful brands today aren't built by corporations.
They're built by individuals with compelling personal stories.
Think about it:
• Elon Musk drives Tesla's brand
• Steve Jobs WAS Apple
• Richard Branson embodies Virgin
When companies focus on corporate expansion instead of personal connection, they lose their soul.
And their customers.
• Elon Musk drives Tesla's brand
• Steve Jobs WAS Apple
• Richard Branson embodies Virgin
When companies focus on corporate expansion instead of personal connection, they lose their soul.
And their customers.
In today's world, your personal story is your company's greatest asset.
When you build trust through authentic personal branding, customers choose YOU over competitors.
When you build trust through authentic personal branding, customers choose YOU over competitors.
Thanks for reading.
If you're a founder, here's how I can help:
I'll help you build your premium brand and get more clients through viral threads like these.
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calendly.com/andrejdrats/di…
If you're a founder, here's how I can help:
I'll help you build your premium brand and get more clients through viral threads like these.
So far, my threads have generated over 300M views.
If you're interested, book a call below:
calendly.com/andrejdrats/di…
Follow @AndrejDrats for more content on entrepreneurship.
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