Back in July we posted a piece entitled “GoPro Beware? iAdventure Shot Entirely on iPhone”. But even before that – literally almost a year ago to the day – we posted a piece entitled “Apple Scrathes an Itch, GoPro Stock Breaks Out in Hives.” Competition is a difficult thing.
Last January, breaking out in hives meant a share price dropping as low as $48.23 before closing at almost $50 on the day.
This time (January 13th, 2016), GoPro closed at $14.61.
You can read the details below, but my fear is that GoPro’s woes are far from over. Smartphones have gotten too good, and there is a fairly small and finite supply of people excited to take video selfies while jumping out of planes, surfing the big one, or jumping Snake River Canyon.
GoPro Shares at an All-Time Low After Disaster Sales; Will Let Go 7% of Its Staff
Via DIY Photography:
In its announcement to investors of Q4 and overall preliminary results for 2015, GoPro said it will be cutting back its workforce by 7% in order to “better align resources to key growth initiatives”, but Business Insider says the move came as “sales are a disaster”. Meanwhile the company’s shares hit an all-time low.
That might be hard to believe considering the company’s annual revenue grew by 16% to $1.6 billion in 2015, but the market was disappointed by the lower-than-expected sales.
“Over the past two years, GoPro’s headcount has grown by more than 50% annually, to more than 1,500 employees at the end of 2015,” the statement says, and shortly thereafter it announced the reduction in its workforce.
Business Insider reports that GoPro shares had been halted for news pending after the closing bell, but things didn’t improve after trading continued – as the shares collapsed by 24%.
Source: Business Insider
|Note: it is our policy to give credit as well as deserved traffic to our news sources – so we don't repost the entire article – sorry, I know you want the juicy bits, but I feel it is only fair that their site get the traffic and besides, you just might make a new friend and find an advertiser that has something you've never seen before|
(cover photo credit: snap from DIY Photography on a photo by Ken Teegardin)