GoPro (GPRO) Stock: Investors in “Prove It” Mode

GoPro Inc (NASDAQ: GPRO)

GoPro had a relatively strong week in the market last week, and for good reason. The company recently unleashed two new products in the marketplace. However, this week is turning out to be a rough one as investors go back to “Prove It” mode. Today, we’ll talk about the two new products, why investors are starting to sell the stock, what we’re seeing in the market today, and what we can expect to see from GPRO moving forward.

GPRO Releases Two New Products!

As mentioned above, GoPro had a great week last week after recently releasing two new products. The two products included the Hero 5, the latest and greatest in the company’s line of extreme action cameras. Of course, the Hero 5 comes with some cool new features, but all in all, it’s right in line with what we’ve seen before.

The second product that GPRO released was the Karma. The Karma is the first drone that the company has released. In an effort to tackle a wider audience, the company created a drone that brings its cameras to new heights… literally!

Why Investors Aren’t Holding Onto Shares Today

As mentioned above, GPRO is retreating from recent highs today, and for good reason. At the end of the day, the company has proven its ability to create great products. It has proven that innovation is a strong suit. However, the company has also proven that it is relatively weak when it comes to sales. While many believe that the audience for extreme action cameras is simply too small, others believe that the company is lacking in a big way when it comes to promotion.

As a result, the stock is falling from recent highs as investors await promotional materials and sales numbers. At the end of the day, if a company can create a great product, but for some reason, can’t sell it, well, that company becomes a hobby doesn’t it? Investors ultimately want to make sure that GoPro can couple it’s great new products with great new marketing plans.

What We’re Seeing In The Market Today

Unfortunately, GPRO is having a rough day in the market today as investors start to sell their shares and take their profits. Currently (1:41), the stock is trading at $16.14 per share after a loss of $0.78 per share or 4.61% thus far today.

What We Can Expect To See Moving Forward

Moving forward, while I remain relatively optimistic with regard to new products, I do have big concerns with regard to GoPro. All in all, while I am optimistic, I am ultimately bearish. At the end of the day, it can’t be argued that GPRO is great at creating great products. In fact, I own a few of them myself! However, the company is being hit with competition from all angles, and is not good at sales. To solve its problems with regard to sales, the company has entered into the drone market; a market that is already dominated by DJI. All in all, I don’t think that the prospects surrounding this stock are quite as positive as investors would like to see.

What Do You Think?

Where do you think GPRO is headed moving forward? Join the discussion in the comments below!