Go Pro has issued a performance you certainly wouldn’t want to playback on any of its video recording devices: 2018 welcomed in an amazing down of 25% in the first moments of stock trading yesterday as guidance was slashed from the company and a new arm of the company, drones manufacturing, was completely shut down. The video camera making company has had an extremely tough time, most likely due to low-cost generic competitors, but also due to the issue of mobile phone devices which almost all now offer high-quality camera recording hardware. This will likely be a key factor in the demise of Go Pro’s core business.
The stock first IPO’d in 2014 to an absolute fanfare of investor interest. Firstly priced at $30, but very quickly, in just 3 weeks, spiking to over $90 per share. At this stage, the business was valued at an eye-watering $11 billion. Yesterday the stock moved to an all-time low of $5.04 and in its current form, I am struggling to see how the business can survive. For me, the only way forward for Go Pro would be a buy out from a larger tech company with deeper pockets that can progress the business.
The above-mentioned market views and content reflect only the opinion of the author, not that of ayondo. This service is for informational purposes only and does not constitute advice or investment advice.