Despite the image they want to give dynamism and everything is better than ever, the reality is that things are not going well, nothing good in GoPro, who just introduced disastrous financial results for the third quarter of 2016, which they were well below forecasts of analysts that caused the company 's stock to plummet by 23%, the worst drop in the history of the company.
The fall in the stock market led the company to suspend operations so as not to suffer further damage, but in that period of almost one hour the company lost nearly $ 250 million, from having a value of 1,230 million to 972 million. The main reason was that GoPro presented revenues of 240.56 million dollars, while the same period last year income barely exceeded 400 million, which means a total drop of 39.9%.
Competition begins to tighten
What analysts and investors expected a drop in income following the trend of what the company has presented throughout the year, however, no one imagined that the fall was of such magnitude.
This is mainly because the market has matured and there are several options, especially cheaper, about what GoPro offers Chinese brands with good quality at less than half price, this excluding accessories manufactured by third parties who are the perfect choice to what has GoPro in the marketplace.
Despite this, Nick Woodman, CEO of the company, has come to try to calm the mentioned waters in 2017 hope to return to the path of profitability, plus it stressed that its current products, among which are the drone Karma and cameras Hero5 Session and Black, "are the best in its history and consumer demand is very strong."
Note that in the numbers presented by GoPro are not yet reflected sales of its new products, since they went on sale a week before the closing period, so the next quarter could be facing a slight recovery and to calm the nervousness currently and is jeopardizing the future of the company.
So far this year the company 's shares have fallen by 34%, which is also causing a change in forecasts, as GoPro estimated revenues between 600 and 650 million for the last quarter, when analysts They expect at least 657 million, plus they are changing their forecasts annual income between 1,250 and reducing them to 1.300 million, while previous estimates were between 1,350 and 1,500 million.
Things are not easy for GoPro since ceased to be the king of the chambers of action and its entry to the market for drones has left a bittersweet taste, so the company will need something stronger to pick up, a strategy that makes draw the attention of consumers, as today GoPro is in freefall and seems to find a way to put brake.