Is it right time for the investors to bunk their shares or should they wait a few more months?
GoPro hits the bottom when its latest action video camera Hero4 Session turned out to be a huge failure. The sales decline at such an alarming rate that the company has to bear the price cut of the product from $400 to $199 – more than 50% of the initial price.
Subsequently, the significant decline in GoPro stock gave a hard blow to America’s popular manufacturer of action cameras when the company’s stock price tumbled down from a strong $60 to an alarmingly low price of $10.
So the question remains will it be plausible to part with the company’s stock before it crashes down even more. The stock is not demonstrating a good picture as a more than 2% is now every day’s news for the camera business. Taking decision regarding the stock will be a risky gamble.
If GoPro manages to make a big sale of its products, then it is likely to return on track. The analysts have given mixed reviews on the organization’s future. The struggling company too speculates a 31.4% decline year-over-year to $435 million. The disappointed management has also cut down 7% of its workforce.
GoPro’s initiative in investing in the growing virtual reality realm (VR) industry can be the last option for the drowning business. It is no secret that the industry regards GoPro to be synonym of VR. Earlier, it has launched 360-degree videos while in a partnership with Facebook.
The camera manufacturer is all set to launch its new product, Karma, in October 2016. Its first drone offers 360-degree video shooting capability. If the product meets the expectations of the impatient customers, then the company will emerge strongly in the market. Furthermore, the drone market is relatively new and in its initial stages. Thus, a product offering such an amazing feature as ‘Karma’ claims would surpass the entire available product in the market.
GoPro has also signed a deal with Alphabet – formerly known as Google – with an objective to bring VR to YouTube. Alphabet plans on to make its own VR headsets. The proposed products will be sold at a comparatively low price. GoPro’s plans do give a ray of hope that it is likely pull itself from the abyss in the future.
Only time will tell whether the Californian company will come out of its current mayhem or will it hide behind the gigantic rivals and be the one-hit wonder for all the years to come. As on Thursday, the stock price decreased by almost 3% and stood at $10.68.