News | Jobs | Classifieds | SMS | Forum | Connect
Complete Bulk SMS Reseller Website for N16,000 ONLY!



News  »  Finance


GoPro shares fall to record low after Goldman, Citi say Sell

Nigerian News Update » Nigerian Newspapers
Guardian Newspaper
GoPro Inc. fell to a record low Monday after Goldman Sachs Group Inc. became the second firm in two days to recommend selling the stock, highlighting the camera maker’s struggles to compete in an increasingly crowded market and overcome missteps with new products.
“We think GoPro’s main challenge is that its core action market is largely saturated, as it has not attracted a significantly broader and more mainstream audience,” Simona Jankowski, an analyst at Goldman Sachs, wrote in a note to clients. “We expect GoPro to continue to struggle fundamentally.”

The shares fell as much as 10 percent to $7.95, the lowest intraday price since June 2014, when the company first sold shares to the public at $24.

On March 3, Citigroup Global Markets Inc. initiated coverage of the stock with a sell recommendation and a price target of $8. Citi analyst Stanley Kovler called the company the “best house in a deteriorating neighborhood.”
GoPro’s market-leading action camera products are not enough to overcome the overall decline in standalone imaging products like camcorders and cameras, and increased saturation in mature markets like the U.S., he wrote.

In early February, GoPro gave another disappointing earnings report and forecast, capping what has been a string of mishaps. The company was forced to recall its Karma drone in November, less than two months after its much-hyped debut and the new Hero5 camera — that Chief Executive Officer Nick Woodman had been counting on to revitalize demand — was hit with production delays, leading to lower sales.

In November GoPro said that it would eliminate about 15 percent of its workforce and shut down its entertainment division to reduce costs. GoPro said earlier this month that it would reduce adjusted operating expenses to less than $600 million this year. But Goldman’s Jankowski said the company will need to get that down to less than $500 million in order to break even on an operating basis.

In order to “get more positive on GoPro shares,” Jankowski said she’d need to see the company nail its product development and launches, especially the Hero6 for the holiday season — “enough to reinvigorate growth in the core business as well as add distance to competitors such as YI Technology.”

Also, she’d need to see a “more compelling drone introduction” and would look for GoPro to introduce an integrated 360 video capture device.
Be the first to comment:
Male: Female:
Get a Website for your Business at N20k Only! Domain Registration and Web Hosting, absolutely Free! Click here to send your Website Content or Whatsapp 08160266850 for any enquiry.
You might also like:
Man commits suicide after beating mother to death

A 28-year-year man identified as Ekene Ezeogo on Monday allegedly committed suicide, three days after beating his mother to death in Abakaliki, the...

Obasanjo, Atiku, govs, others’ exit affected us, says PDP

The national leadership of the Peoples Democratic Party said in Abuja on Tuesday that the departure of former President Olusegun Obasanjo; his then...

Policemen, others stole all movable items in my house – Jonatha

Former President Goodluck Jonathan on Tuesday gave more insights into the theft in his Gwarimpa residence in Abuja, saying the suspects stole all...