GoPro Inc (NASDAQ:GPRO) rout in the market refuses to go away, the stock having tanked to its lowest level, after a dismal fourth quarter earnings. A guidance that fell short of estimates was the last thing the stock needed, seen by the current trading levels of $9.78 a share. The stock has now shed 90% of its market value from its October 2014 highs of $93.85 a share.
GoPro Unending Woes
The company is in dire need of a new product if it is to bounce back from the current mess. Its Hero camera line is no longer eliciting the much-needed hype and demand needed to trigger sales growth. GoPro Inc (NASDAQ:GPRO) is especially paying the price of introducing its latest model, the Hero4 session camera, before the critical holiday shopping season. Two price cuts initiated to trigger sales have all but failed to achieve the desired effect.
The action camera maker new editing software could also have contributed a great deal to the current rout. The software has been the subject of complaints in the recent past for not being user-friendly. Such complaints come at the worst time as investors having also raised concerns over the impact of competition going forward.
New Areas of Focus
Mounting pressure on all fronts has all but forced CEO, Nicholas Woodman, to look for new ways to appease users and investors. The drone market is now seen as GoPro last push on its attempt to reinvigorate its prospects. The launch of the company’s first product in the space is not expected until sometime later in the year.
New editing software is also on the way as GoPro continues to address some of the problems that have crashed it to all-time lows in the market. Woodman also says that the next set of cameras will do a better job when connecting with smartphone and the cloud.
GoPro Inc (NASDAQ:GPRO) also has some products in the virtual reality space as it continues to diversify its areas of operations.
We acknowledge the challenges facing our business. In 2016, we are committed to delivering the breakthrough experience we’ve all been waiting for,” said Mr. Woodman.
The investments, however, come at a price GoPro Inc (NASDAQ:GPRO)’s expenditure having clocked levels not seen before. The only way the company can be able to shore up its margins going forward is by ensuring the next set of products are better than the current ones. That is the only way it can be able to trigger sales growth.
