Things are not looking good for GoPro (NASDAQ:GPRO). The video-camera maker’s stock plunged over 6% on Monday morning, and it could drop even further – as much as 29%. That’s the prediction that Barron’s Magazine is making. In an article published last weekend, the magazine predicts a drop to $25 a share.
GoPro’s stock is already down 44% compared to last year. When the company first debuted in June of 2014, shares shot up 31%. Despite the jump, there were skeptics that wondered if the company could beat competitors who could launch similar products at lower prices. Shares for the company hit their peak in October 2014 at $98 a share.
Thus far, the company has spent most of the year in a decline. Now, GoPro shares are trading at $35 – the same level when the company launched its IPO.
Barron’s Alexander Eulelabeled GoPro a “one-product wonder,” and noted that companies likethis don’t fare well in the long run. When Apple was issued a camera-related patent, GoPro shares dropped 12%. When Apple released details of their new iPhone cameras, shares declined again.
In more bad news for the company, Xiaomi, a Chinese manufacturer, announced a 16MP camera that was very similar to GoPro cameras and comes at a much lower price point.