GoPro Inc. ($GPRO) Stock | Shares Implode On Weak Guidance & Profit Warnings





GoPro Inc News

After the close yesterday, shares of GPRO were took a huge hit as the company announced that they had weaker than expected sales over the holidays and now expect Q4 revenue to be in the $435 million range versus analyst expectations of $512 million. “GoPro also announced plans to cut its workforce by about 7%, or about 100 workers. It had more than 1,500 employees at the end of 2015. GoPro expects to incur about $5 million to $10 million of restructuring expenses in Q1 2016, most of which will be severance costs.” (Investors)


With the weak sales from the Hero4 camera, GPRO will have to start looking at different ways to bring in revenue, which will most likely be in the drone and virtual reality sectors, so we’ll have to wait and see how they approach this. In the mean time, analysts have come out with downgrades, the worst of which was issued by Pacific Crest with a new price target of $5, down from $10. With such a low stock price now, I wouldn’t be surprised if someone came in and scooped them up. There is definitely still value in the GoPro name, their game plan just needs to be revamped and costs will need to be under a microscope in order to get them turned around.


GPRO Technicals

GPRO Chart

Shares of GPRO were pummeled for over 20% in the post market session after the company issued lower guidance and profit warnings from the holiday season. Shares hit all time lows of $10.29 right after the halt was lifted but were only able to recover just a little bit to the $11 range. Being that we’re in uncharted territory it’s hard to say where support will come in so I’d look around the whole numbers like the $10 and $9 levels. Resistance will be met around the $14.32, $14.57 and $16 levels.


Since GPRO’s IPO price of $28.65 back in June of 2014, shares have been on a wild ride. Getting lifted all the way to highs of $98.47 in October only to slowly bleed out to the low teens over the next year. As of the close yesterday, shares of GPRO are down 49% from their IPO price of $28.65 and 85% from there all time highs. Not sure where GPRO will go from here but they will definitely have to explore some new revenue streams and they may even be a candidate for a possible buy out if the price is right. If you truly believe in this company then you could look at this as a great opportunity to get long but you may have to hold it for a while until the dust settles because right now it doesn’t look like anyone is interested in them.


Company Profile

GoPro, Inc. manufactures and sells camera and camera accessories. It provides mountable and wearable cameras and accessories, which refers as capture devices. The company sells products through retailers, wholesale distributors and on the website. GoPro was founded by Nicholas Woodman in 2002 and is headquartered in San Mateo, CA. (MarketWatch)