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GoPro Stock Slid in January 2018

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Jan. 30 2018, Published 5:47 p.m. ET

GoPro stock fell 10.2% last week

The stock price of consumer technology (QQQ) firm GoPro (GPRO) fell more than 10.0% in the week ended January 26, 2018, to close at $5.65. GoPro stock is trading 12.0% above its 52-week low of $5.04 and 52.5% below its 52-week high of $11.89. 

GPRO stock fell 5.2% on January 26, 2018, 7.4% on January 25, 2018, and it has declined 25.0% since the start of 2018. In the trailing-12-month period, GoPro stock has fallen more than 43.0%.

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Employee layoff and preliminary 4Q17 results

GoPro (GPRO) stock has lost one-fourth of its total value in 2018. Its stock fell 15.0% on January 8, 2018, after the company announced its preliminary 4Q17 results and expected revenues of $340.0 million. In the 2016 holiday season, GoPro reported revenues of ~$540.0 million.

With the Karma drone and HERO6 line of cameras, it seemed that GoPro has products that could drive long-term revenue growth. However, the company recently announced that it would be discontinuing the sale of its Karma drone due to lower-than-expected demand. GoPro’s management also reduced the price of the HERO6 Black camera by $100.

Price protection for products such as the HERO6 Black, the HERO5 Black, and the HERO5 Session cameras could result in a negative revenue impact of ~$80.0 million in 4Q17.

GoPro also announced a staff layoff of 200–300 employees, mainly from the drone division. In late 2016, the company laid off 370 employees after an unsuccessful foray into the VR (virtual reality) space.

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