The Fool headed out to Vegas to check out the 2014 International Consumer Electronics Show. With more than 3,200 exhibitors, including 88% of the top retailers in consumer electronics, the CES is the place to be to see what's coming up in tech.
Not just a niche product anymore, GoPro had the most popular booth at the 2014 CES, and the tech inside to back it up, with Ambarella (NASDAQ:AMBA)-powered 4K video processing.
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A full transcript follows the video.
Eric Bleeker: Hey, Fools. I'm Eric Bleeker with tech analyst Evan Niu at CES. One of the most popular booths is GoPro -- it feels like a dance club in here, is how I would describe it! It has been one of the most packed booths the whole time, I think, which speaks to the popularity of their product.
Ambarella is a Motley Fool stock recommendation. They make the system on the chip that actually powers GoPro products. What are you seeing here that would make you feel better about their prospects, with GoPro being their largest customer?
Evan Niu: Yeah, like you said, it's been pretty packed. For something that you normally would think would be a niche market of enthusiasts that want to record themselves doing really active sports and stuff, you can see that maybe it's opening up a little bit more to the mainstream.
There's a kid's bike over here, for maybe your kids to do this, so I think they're really trying to broaden the appeal. I think they said the most recent -- GoPro Hero3+ -- was launched in October. I think they added some 4K video processing.
Another thing that you and I noticed was that, at the Sony (NYSE:SNE) booth yesterday we saw a very similar product -- where it's head-mounted action cams -- but we were looking at the actual end product, and it's really not as impressive as what GoPro has here.
GoPro is much sharper, there's much more stabilization in there, so I think there's a lot going here. Obviously, Ambarella is the real key winner here, as far as the investment side of it goes.
Eric: Yeah, the fortunes of Ambarella and GoPro are intertwined, with it being such a major customer. You might say, "Are people going to continue buying helmet-based cameras?" Well, like you just said, they're shooing in 4K. The big Hollywood studios aren't even ramped up on 4K, and GoPro is there.
They've stretched their product line, and hey, if you want to pull the Peter Lynch thing of just investing in what you can see, this is probably the most popular booth at CES I've witnessed.
Evan: It's definitely one of them.
Eric: That's our take on Ambarella as it relates to GoPro. Make sure for all your CES news, head back to Fool.com. Fool on!
Eric Bleeker, CFA, and Evan Niu, CFA, have no position in any stocks mentioned. The Motley Fool recommends and owns shares of Ambarella. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.