GoPro Shares Plummet To Record Low, Considers Sale
Following yesterday’s news of disappointing fourth-quarter results, job cuts, and its decision to exit the drone business, shares in GoPro plummeted to a record low, dropping nearly 33%.
Shares in GoPro have further declined 5% since Monday’s announcement, which saw shares slump to a record low of US$5.04.
The action camera maker’s shares have since dipped following the remarks of several US analysts who reportedly warned that GoPro products would not be able to offset market saturation.
Wedbush Securities Analyst Alicia Reese expressed her sentiments in a note:
“The increasing power and presence of smartphones have negatively impacted sales of GoPro’s products, with its pace of innovation unable to offset creeping market saturation”.
Dougherty & Co. Analyst Charles Anderson also informed investors that the global demand for GoPro products is not likely to climb higher.Wedbush Securities Analyst Michael Pachter suggests that the company build traction and show proof of sales growth:
“It isn’t clear that they have much of a strategy beyond selling more HERO cameras. I‘m not sure investors will warm up to the story until they demonstrate some traction with sales growth”.
As reported earlier, GoPro CEO Nicholas Woodman, informed CNBC on Monday that it had hired JP Morgan Chase to sniff out a potential sale:
“If there are opportunities for us to unite with a bigger parent company to scale GoPro even bigger, that is something that we would look at”