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GoPro Shares Take the Plunge

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GPRO shares fell ~8%

Shares of consumer technology (QQQ) firm GoPro (GPRO) fell 8.4% last week (ended August 18, 2017) to close at $9.05. GoPro is now trading 27% above its 52-week low of $7.14 and 49% below its 52-week high of $9.05.

Notably, however, GoPro’s stock rose 4% last Tuesday (August 15) in premarket trade after investment bank Goldman Sachs (GS) upgraded the stock from “sell” to “neutral.”

GoPro stock rose over 20% in the week ended August 4, 2017, after the firm announced its 2Q17 results. Since the start of August 2017, the stock has risen almost 10%, but the stock has fallen ~40% in the past 12 months, after falling 51% in calendar 2016.

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Impressive 2Q17 results

GoPro reported revenues of $297 million for 2Q17—10% over the analyst estimate of $269 million and a rise of 34% YoY (year-over-year). Its EPS (earnings per share) was -$0.09, which was well above analyst estimate of -$0.25.

Investors are hoping that GoPro has recovered from the issues that have plagued the firm for the past two years.

GoPro’s stock has been negatively impacted by software quality and supply-chain issues. GoPro is optimistic that its Karma drone, the HERO camera, and the 360-degree Fusion (which be launched later this year) will drive revenue growth in fiscal 2017 and beyond.

Notably, GoPro has already seen a YoY shipment rise of 40% in 2Q17 to 1.1 million units.

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