Recently, I was able to attend an event that focused on Virtual Reality content development. One of the key areas of the curriculum was to create your own 360 video content by using various cameras, following by stitching, post processing and then distribution.

I was amazed at some of the consumer and prosumer rigs available for assisting you with shooting in 360 mode. One very popular piece of equipment during these sessions was the GoPro rigs. I was able to look at different set-ups. There were rigs that were made of multiple GoPro cameras varying from 6 camera units to ten camera units. GoPro is definitely becoming the rig of choice for professional 360 content developers.

Prior familiarity with these cameras does influence the choice of consumers that are trying to get a 360 equipment. The other factor that influences decision-making is around the stitching software. GoPro acquired the French software company Kolor in 2015 for an undisclosed amount. Autopano, the software offering from Kolor has a good fan following when it comes to the sync and the stitching process.

As new consumers get into shopping for their next camera, or think about upgrading from their Theta M15s in to a more professional setup, it is important to understand some of the risks around purchasing a GoPro unit.

When a technology is in its nascent stage of development, it requires a lot of resources from a company to expand its market size, to create new features in future product offerings and to invest in resources to educate customers. Development via organic R&D efforts although inspiring often leaves a gap when the technology is changing at a dramatic speed. This gap is usually met by acquiring new companies that complement the product strategy. After the Kolor acquisition GoPro has not made any major acquisitions.

The GPRO stock has been beaten down in the recent quarters. Infact, the stock is down by 72% from its high of $70 to its current stock price of $19 and change. On its, own this may not have been a worry, but when you examine the quarterly operating cash position, it doesn’t paint a much more optimistic view either. Total cash flow from operating activities has fallen by 92% from period ending June 30,2015 to Sept 30,2015. The company is definitely not generating the level of cash that it used to in prior quarters. Given any material acquisition is going to require considerable equity and cash, the current financials are definitely not the best asset that it can leverage to attract young and talented companies.

The company does make some good products and definitely has a large fan following. There was also some speculation this year in Sept around it being a potential acquisition for Apple. This rumor was again in the headlines this morning at street.com and as a result, the stock is trading higher.

If you are looking to buy a piece of 360 professional equipment which will last longer and will be upgraded with new features with time and provide you with reasonable customer support, you may want to wait a little longer to see how the rumored GoPro acquisition plays out before investing your dollars.

Chances are that you may be buying yourself an Apple 360/VR camera!