The action camera maker is been struggling for a while now however in the past four week the stock price was seen perform well, we believe that it was just a temporary drop.
In early trading hours on March 8, GoPro Inc.’s stock plunged as much as 10% due to an overall sell-off in the technology sector. This drop in the stock price of the action camera maker created a sense of confusion amongst the shareholders. Additionally, Ambarella, the action camera maker’s supplier also dropped by 8% along with a number of other tech companies in the industry that witnessed a decline of as much as 5%.
2016 has been a rough year for the action camera maker; with an already declining stock price this was just cherry on top. Ever since the start of the current year, the stock has plunged by as much as 30% and in the past twelve months, it has gone down by 70% which has left the company as well as its investors in a state of utter confusion and distress.
The action camera manufacturer had hoped for the holiday season to be a turning point as most of the tech giants in the industry witnessed the most sales during the period, however to its disappointment the company failed to perform well. GoPro’s latest Hero Line failed to woo the target audience due to which the company reported poor earnings for the fourth quarter of fiscal year 2015 along with weak guidance for the current fiscal year.
The latest drop in the stock price came as a surprise to the followers of the organization as in the past four weeks, it was observed that the camera maker’s stock was gaining back its momentum in an upward trajectory – it witnessed an increase of 15% in stock price during the period. This increase was a result of positive news by the management which helped the company’s investors be more optimistic towards the company.
In recent time, the action camera maker has received increased competition from the smartphone and drone industry. However, GoPro Inc. is trying its best to come up with new and exciting products for its consumers. Recently, it acquired two startup companies which include Stupeflix and Vemory; the aim of acquiring these two startups was to develop the instant video editing app on which the company has been criticized numerous times.
Stupeflix is a Paris based technology company that created Replay App while Vemory is a Texas-based tech organization that created iPhone Slice app. Both the startup organizations were worth $105 million, mainly to create a better software interface for GoPro’s customers. Many a times, the American camera maker had been criticized over its video editing options as initially they were so advanced that they were suitable for videographers while general public was having difficulty in making in work.
Nick Woodman, the CEO of GoPro, later got around to the point that the business needs to introduce technology that the general consumer can work with if it wants its sales to go up and hence conducted these two acquisitions so create a user-friendly editing application for the camera. Additionally, this month the company is expected to roll out its desktop version for its customers as well, with the help of which they will be able to capture and post their moments on to their social media profiles.
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