GoPro, Inc. (NASDAQ: GPRO)
GoPro has been having a rough time in the market for some time now. However, it seemed as though the company was turning things around recently. The company unveiled two new products, exciting investors, and leading to highs. However, when this happened, I warned my followers not to get too excited. At the end of the day, the company had a big issue to work through. Now, the stock is falling on the launch of one of those two new products. Today, we’ll talk about what we’re seeing in the market, why the stock is taking a dive, and what we can expect to see from GPRO ahead.
GPRO Takes A Dive
As mentioned above, GoPro is having an incredibly rough day in the market today. From the opening bell, we’ve seen declines, pushing this thing into the red. Currently (11:30), the stock is trading at $14.10 per share after a loss of $0.83 per share or 5.56% thus far today.
GoPro Unleashes Karma
The declines on the stock today are surprising for many. After all, recently, the company unveiled the Karma Drone and the Hero 5 action camera. When the company unveiled the products, investor excitement ran high, pushing the value of the stock upward in a big way. So, with Karma being released today, we’d expect to see gains in GPRO. However, that’s not what we’re seeing at all.
Why We’re Seeing Declines
In most cases, when a company releases a product for sale, we tend to see gains. After all, new products mean new opportunities for increasing revenue and earnings. Unfortunately however, we’re not seeing gains in GPRO today. So, why is the stock falling on the day of a product release?
Well, the answer is relatively simple. Throughout the history of GoPro, we’ve known that the company is great at creating incredible products. The level of innovation in the photography industry is considered by many to be second to none. However, innovation and strong products aren’t the only things that a company needs to survive. In order for GPRO to see growth, it needs to be able to sell its products. Unfortunately, marketing has been a fundamental flaw that the company has dealt with since conception, and many believe that we’re not going to see much change on this product round.
What We Can Expect To See Ahead
While I would love to say that I’m expecting to see big gains from GPRO ahead, that’s simply not the case. The reality is that the company has a proven record of a fundamental inability to properly market its products. Because of its inability to compete in the growing competition industry known as the extreme action cameras industry, the company looked to a new industry to try and dominate, the drone industry. Unfortunately however, this industry already has clear leaders, and if GPRO can’t compete in an industry that it largely created, the idea that it will be able to step into the drone industry and take a leadership role is questionable at best. At the end of the day, I’m in the prove it mode. Ultimately, I’m expecting to see declines on GoPro until the company proves that it has what it takes to actually sell its products.
What Do You Think?
Where do you think GPRO is headed and why? Join the discussion in the comments below!