Are GoPro Inc and GPRO Stock Done For?
GoPro Inc (NASDAQ:GPRO) sees GPRO stock fall another 4.5% after already taking an 18% beating last week.
This decline continues the rough trend where the stock has plunged 40% since the start of 2016. The most recent drop was pushed by a dismal Q3 showing. GoPro reported a loss of $0.60 per share, far worse than the $0.35 loss per share that some analysts predicted. Net income is also down 330%.
What accounts for GPRO stock’s woes? Well, a number of writers have chimed in on just why the wearable camera hasn’t been able to rebound from this string of poor results.
Take Ethan Wolff-Mann from Yahoo! Finance. His position on GPRO stock is hardly a kind one.
“It’s hard to believe people didn’t see these numbers coming. GoPro, which makes wearable cameras from $199 to $399, hasn’t advanced its core technologies meaningfully enough to compel consumers to upgrade from, say, a Hero 3 model to a 4K Ultra HD. But most of all, the action cam industry was built on a very shaky premise: that the general public does a lot of cool stuff worthy of capturing on video,” he wrote in his article.
“The truth is, most people do not live lives that look good when recorded by a GoPro. On a daily basis, most people commute, work, maybe exercise, and live a domestic life, and their smartphones usually can handle any video needs that arise, like capturing a kid doing something cute or their dog skateboarding,” Wolff-Mann continued.
“But the GoPro’s loose foundation goes past people not kayaking, mountain biking, skydiving, climbing, skiing, or surfing on a regular basis. Even when you get out there and do cool stuff, will it actually look cool on video?” he asked. (Source: “GoPro’s empire was built on one big fatal flaw,” Yahoo! Finance, November 4, 2016.)
And it’s a valid question. Ultimately, GoPro has a lot of its eggs riding in the drone-powered basket of the “Karma,” its new consumer drone that went on sale in October (but won’t be counted in sales until Q4 2016). This new gadget, along with the most recent iteration of GoPro’s body camera, the “Hero5,” is meant to try and pull GPRO stock out of free fall with a strong holiday season showing. The question is, will it work?