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.”
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.
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.