What’s Next for GoPro Stock?
GoPro Inc (NASDAQ:GPRO) had a pretty dismal 2016. The company shaved about 50% off its share value and at the beginning of 2017, that trend looks to be continuing. GoPro stock fell 3.5% by early afternoon trading on Friday. The question for investors is: Can the tech gadget producer turn things around and put the share price on a better path?
GoPro stock was looking for some big moves in the 2016 holiday season to help free itself from the rut. These included a new drone offering and an updated model of its flagship tech, a small camera meant to capture moments of excitement, whether on the ski hills or underwater. They did not, however, prove enough to rescue GPRO stock.
The main knock on GoPro stock that a lot of analysts are concerned about is whether there really is a market for more of these cameras. After all, once you have one, there isn’t much incentive to upgrade. Couple that with the fact that the market is not expected to radically grow, and you see the issues with GoPro stock, or least the most superficial ones.
That beings said, forays into the drone market—expected to grow 50% this year to $1.2 billion in revenue according to the Consumer Technology Association—could help revitalize the flagging shares. However, the company’s “Karma” drone has failed to make waves at CES 2017, which does not bode well for the future of GoPro stock. (Source: “GoPro Inc (GPRO) Stock Looks for Fresh Start in 2017,” InvestorPlace, January 5, 2017.)
That doesn’t mean that the company is dead in the water. Investors ought to be aware that GPRO stock will need some help this year if it wants to avoid the steep declines that have come to characterize the stock over the past two years.