GoPro, Inc. ($GPRO) Stock | Stock Falls On Weak Preliminary Earnings, Guidance And Downsizing


GoPro, Inc. (NASDAQ : GPRO)



GoPro, Inc. (GPRO), a company that manufactures cameras on Wednesday announced preliminary financial results for fourth quarter 2015. GPRO expects fourth quarter revenues to be $435 million down from analyst expectations of $521 million. GPRO expects full year revenues of $1.6 billion down from analyst expectations of $1.69 billion.  Additionally the company also announced that they will be cutting 7% of their workforce.


GoPro, Inc. Cutting Work Force

“Over the past two years, GoPro’s headcount has grown by more than 50% annually, to more than 1,500 employees at the end of 2015. To better align resources to key growth initiatives, GoPro has implemented a reduction in its workforce of approximately 7 percent. The Company estimates it will incur approximately $5 million to $10 million of restructuring expenses in the first quarter of 2016, substantially all of which will be severance costs.”  PR Newswire


GPRO Technical Analysis

GPRO Chart

GPRO gapped down in price yesterday to $11.49, down from the prior day’s close of $14.61, which is a 21% decrease in price. Taking a look at the daily chart, we can see that we are in unchartered territory as GPRO is now sitting at all time lows. The gap down in price can be contributed to the weak earnings and guidance numbers. Taking a closer look at the daily chart we can see that GPRO has been on an overall decline dating back to August 10 when it traded at $64.74. GPRO has a float of 70.07 million shares and is trading 2 times the normal daily trading volume. GPRO did reach pre market lows of $10.56, but bounced back $0.93 at the open, or equivalent to 9%. For trading purposes, my entry point short would have been $11.40 looking for a move to $11. My stop loss would have been $11.60, fearing anything above that and the stock would start to fill in the gap down.


Company Profile

GoPro, Inc. develops hardware and software solutions to alleviate consumer pain points associated with capturing, managing, sharing, and enjoying engaging content. The company offers HERO line of capture devices, such as cameras; premium accessories, including battery BacPac, smart remote, and LCD touch BacPac accessories; and mounts comprising equipment-based mounts consisting of helmet, handlebar, roll bar, and grip and tripod mounts that enable consumers to capture content while engaged in a range of activities, as well as mounts that enable customers to wear the mount on their bodies, such as wrist housings, chest harnesses, and head straps. It also provides other accessories that include spare batteries, charging accessories, cables to connect its GoPro cameras to televisions and monitors, video transmitters, external microphones, flotation devices, dive filters, and anti-fogging solutions, as well as accessories for the smart remotes. In addition, it provides GoPro Studio, a video editing tool that allows users to create professional quality videos from their GoPro content; and GoPro App that allows users to easily and wirelessly manage, store, and share content from cameras to mobile devices. GoPro, Inc. markets and sells its products through retailers and distributors, as well as through its Website in the United States and internationally. The company was formerly known as Woodman Labs, Inc. and changed its name to GoPro, Inc. in February 2014. GoPro, Inc. was founded in 2004 and is headquartered in San Mateo, California.  Yahoo Finance