Short sellers have their knives out for GoPro Inc.
And that's the least of the wearable sports camera maker's problems right now.
GoPro's share price seems to be flopping around wildly on news: surging 11% after a new product announcement, then sinking the same after the company's founders found a loophole that allows them to sell some of their stock early.
The stock has spiked again since then – but I don't expect that to last.
I believe GoPro has done this well for this long – soaring more than 180% since its June initial public offering – because it is the poster child for a market sector that is set for a major boom.
According to the IDC forecasters, wearable tech will grow 78.4% through the end of 2018. If we want to get on the road to wealth that tech provides, then this is a sector we must cash in on.
But I don't want us to get hurt by messing with a risky stock like GoPro.
That's why today I'm going to show you how to invest in wearable tech – the entire sector – with a single investment that offers both safety and big profits…
Way Beyond Action Cameras
Don't get me wrong. I love GoPro Inc. (Nasdaq: GPRO) as a company. I like its story and I'm a fan of its technology – wearable cameras that "extreme" cyclists, surfers, and skiers use to capture and post their incredible stunts.
In this market, however, we just can't justify paying 80 times forward earnings. And besides being a risky stock, GoPro is just a start to the world of wearable technology.
That became abundantly clear Sept. 9 when Apple Inc. (Nasdaq: AAPL) introduced the Apple Watch. Due out next year, the smartwatch can be integrated with the iPhone, used with the new Apple Pay mobile-payments system, and loaded up with dozens of goods from the App Store.
More to the point, I think it will be a huge success. Morgan Stanley agrees, saying that the Cupertino, Calif.-based tech giant could sell 30 million to 60 million Apple Watches in the first year alone.
According to the researchers at ON World, consumers purchased just 4 million smartwatches last year. But ON World predicts shipments will hit 330 million in 2018 – a stunning 8,150% increase in just five years.
And that's only one segment of the wearable tech market. Wearables also include medical devices, fitness and health monitors, GPS trackers, and virtual-reality headsets.
Google Inc. (Nasdaq: GOOG, GOOGL) has several fingers in the wearables glove. You know Google Glass. Worn as eyeglasses, the system displays text messages and maps, takes notes, records video, takes pictures, and displays video.
And Google is using its Android operating system to make an ecosystem play. Android Wear is designed to work with wearable devices from several developers and makers.
As much as I like GoPro, Apple, and Google, there's a much better way to play wearable tech, as I'll explain.
About the Author
Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...
- He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
- He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
- As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.
This all means the entire world is constantly seeking Michael's insight.
In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.
Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.
And even with decades of experience, Michael believes there has never been a moment in time quite like this.
Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.
To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.
His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.