GoPro Trading Halted After Shares Lose Over 20% Of Value

by 10

The company behind the famous compact digital POV camera, GoPro, has had some bad news hit the press today following a tumultuous 12 months of trading. From news reports published via CNBC and Techcrunch, it is alleged that trading at GoPro has been stalled temporarily while the company’s shares are in free fall.

GoPro shares plummeted more than 20 percent Thursday after the company reported disappointing quarterly results and gave weak fourth-quarter and 2016 guidance“, states the CNBC news report. “The technology company missed expectations on both the top and bottom lines, reporting a third-quarter loss of 60 cents a share on revenues of $241 million. Its stock was halted for news pending before the report.” 

gopro camera
GoPro shares have dropped over 20%, with roughly $250 million being wiped from the company’s market value.

Techcrunch.com is also reporting on the story:

Expectations were incredibly low for GoPro this go around and yet somehow the company managed to out do even analyst’s worst fears. The company’s stock trading was halted prior to releasing results that missed revenue expectations by 23 percent and nearly $75 million. When trading began again shares were down 22 percent.

Basically what all of that means is that the market value of GoPro just dropped from $1.2 billion, to about $970 million. Thats $250 million that disappeared off the share price in just mere minutes. Holy moly. And worse than that, GoPro’s share value is currently down 54% to what it was 12 months ago.

karma drone gopro
GoPro is banking heavily on the new Hero5 and Karma Drone to drive 4th quarter sales figures.

The news comes after a rough 12 months for the Californian tech company, which had been celebrating the announcement of Red Bull’s partnership with GoPro back in May of this year. Despite sales not meeting expectations prior to this partnership, GoPro was hinging its hopes on the new Hero 5 and Karma Drone to help boost sales figures. While we’ve not had any experience with the new GoPro Karma drone, online reviews have not been favourable, suggesting that GoPro’s first (and late) entry into the drone market is not up to scratch compared to its well-established competition. Whether the new GoPro Hero 5 and Karma drone will provide the company with the necessary change in direction it requires, is yet to be seen.

Stay tuned for more information as it comes. In the meantime, you can read the full CNBC article here, and the Techcrunch article here.

Comments (10)

    No mention of Brexit in your report?

    How about ‘Brexit has made the wind in the UK hotter that expected, affecting the ability of GoPro’s Karma drone to fly over London, which has impacted sales’ – that kind of thing? 🙂

    But the Karmadrome’s inside us all!

    https://www.youtube.com/watch?v=2YwfFFcNC9o

    Interesting name. I wonder if the marketing guy had dreads in the 90’s?

    GoPro have been overpriced (especially the accessories) for far too long and with so much cheaper, good quality competition out the this was only a matter of time.

    GoPro have traded off reputation for a while now and have been caught by cheaper (less imaginative) copies.
    You can get footage good enough from cheaper cameras. The more expensive GoPro isn’t so much better for web use to justify the extra. The karma looked interesting, until mavic launched, then it looked dated expensive and bloated, a bit like GoPro’s share price.

    I think it’s just that anyone who wanted an action camera, probably has one by now. And the newer ones will only get more and more incrementally better.

    GoPro’s valuation never made any sense.

    – I’m convinced most GoPro’s end up unused in a drawer somewhere (Skiiing this year there seemed to be far fewer on the slopes than the year before – the kids still had them but not so many older people).
    – Once they hit decent HD quality there have been no reasons to upgrade (no one needs 4k and editing it is a pain).
    – a camera’s ultimately a commodity product so once the cheap chinese copies got good enough all they have is their brand.

    Bit surprised there’s mostly negative feedback here. I for one love using my GoPro, even if nobody else is that entertained by the videos I enjoy the editing. I’d be gutted if an innovative, user owned (sure the guy who set it up was a surfer who wanted a waterproof camera) brand fell by the wayside.

    headline should read: “Trading in GoPro shares halted after shares fall 20%”.

    Mind you, can you imagine if the FT tried writing articles about bicycles….

    @simons_nicolai-uk

    Are GoPro’s the foot-spa of the mountain bike world?

Leave a Reply