GoPro’s stock has suffered this year
GoPro (GPRO) has had a rough year so far. Its stock has fallen 40% in 2018. Last month, GoPro stock fell steeply by 24% on the day of its third-quarter earnings. Investors weren’t happy with the company’s below-par outlook for the fourth quarter. But lately, the company has had some good news to share, which could support the stock.
A few days ago, GoPro announced that it recorded strong sales on Black Friday and Cyber Monday. The company mentioned that its flagship product, the HERO7 Black, “continues to generate the highest global post-launch sell-through of any new camera in the company’s history.”
Then today, GoPro announced that “it plans to move most of its US-bound camera production out of China by the summer of 2019 to mitigate the potential impact of inclusion on any new tariff lists.” This is a proactive measure to escape any impact of the US–China trade war. The company claims it expects this move to come at a minimal cost since it owns its production equipment.