GoPro Inc: Why GPRO Stock Is Taking Damage

GoPro StockWhat’s Hurting GoPro’s Stock? 

GoPro Inc (NASDAQ:GPRO) fell in after-hours trading by six percent, due to an expected third-quarter report of further sales decline.

GPRO stock has recorded three straight quarters of sales decline, and market forecasters don’t expect that to change on Thursday evening when GoPro releases its third-quarter report for this year.

This year has been rough for GPRO stock. Since the summer of 2015, GoPro stock has been on a steady downward trajectory. It flatlined in 2016, with few noticeable jumps or falls, but at a much lower value than its peaks in 2014 and 2015. The peak value of GPRO stock in 2015, after its initial downward slide at the start of the year, was $63.06 compared to $17.15 in 2016. GoPro hasn’t gotten close to that number since.

GoPro hopes that its new camera and drone, called the “Hero5” and “Karma,” respectively, can help push sales and revive GPRO stock. However, both products went on sale in October, whereas the third-quarter report only goes up to September 30.

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According to MarketWatch, analysts surveyed by FactSet Research Systems Inc. (NYSE:FDS) expect GoPro to report losses of $0.35 a share, compared to the profit of $0.25 per share a year earlier. (Source: “GoPro earnings to offer first glimpse of Hero5 and Karma demand,” MarketWatch, November 3, 2016.)

Something else to take note of will be the fourth-quarter projections. That is when GoPro’s new devices will officially be counted in the company’s revenue projections. If the discounts offered on older models, the release of new gadgets, and the 2016 holiday season can combine for a strong projected showing from GPRO stock, then everyone’s favorite tool to turn dogs into directors just might see a boon at the end of 2016.

Of course, boon or no boon, the question is whether GoPro stock can keep the goodwill heading into 2017, after the holidays have receded and the buzz surrounding the company’s new gear is out of the limelight.

There’s a lot to look for in GoPro’s earnings report, expected to hit the presses after market-closing on Thursday. Stay glued to Profit Confidential for more updates.

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