More Bad News for GoPro – Earnings Miss Mark

0

2016 has been a bad year for GoPro (GPRO), with stocks tumbling earlier in the year on announcements that sales had fallen dramatically.

Today led to more bad news for the camera manufacturer, with forecast earnings failing to hit the mark by a much wider margin than expected, sending stocks down more than 10% in after-hours trading.

Analysts speculate that GoPro is running into fundamental problems and built-in limitations on growth. “They’re essentially a hardware company, but most customers already have what they need”, said Bob O’Donnell, founder of Technalysis Research.

GoPro’s sales peaked in Q4 of 2014, crossing the $700 million mark, before steadily declining to the current levels, which are around $435 million for Q4 2015. This has caused GoPro’s shares to decline to $8.50 per share, an all-time low and a far cry off their peak of $24 per share in June 2014.

GoPro plans to launch its own drone, Karma, later this year in an attempt to expand its product range and drive fresh sales.

Jacob Maslow is our Editor, and has extensive experience with writing about global financial matters. He also runs a successful SEO consulting business, Mekomi Marketing