2 companies in 2 minutes: $GPRO and $YELP
both companies have seen a decline in their market capitalization due to mega-cap tech companies, such as $GOOG, $FB, or $AAPL, either expanding their products and services by rolling out their own competition, or cameras in smartphones becoming better and less expensive since $GPROs IPO back in 2015.
My purpose in comparing $GPRO and $YELP, is the notable decline in market capitalization even though both companies are fundamentally different, as well as championed and heralded as tech disruptors at one point.
What a lot of business owners can attest to, is that $YELP employs rather aggressive monetization. $YELP is also essentially a standalone application, whereas $GOOG and $FB business listings are free to use, and complementary to their product and service suites, both offering a way for customers to rate their experiences and leave reviews — just like $YELP.
One of the areas both $FB and $GOOG have an edge over $YELP is data analytics derived from surveillance capitalism that further integrates into their product and service suites with real-time data insights. For example, $GOOG with Google Maps or checking in with $FB, and their integration with Google for Business and Facebook.
$GPRO likely shed excess market speculation when smartphones widely began adapting cheap 4K video in devices that are increasingly immune to the elements, facing pressure from $GOOG and $AAPL. This might be contradictory looking at their Q4 2019 earnings when $GPRO swung profitable. However, dropping from nearly $100 a share, the stock appears to be boxed into an incredibly long accumulation phase.
As much as I personally like using $YELP to find new restaurants or hairstylists, unless $GPRO and $YELP are ahead on their R&D to potentially disrupt the big disruptors and spur speculation, further market capitalization decline is likely inevitable with increased pressure from tech mega-caps.