Holiday season 2016 has come and gone, and GoPro Inc GPRO 1.83% shareholders must stomach another disappointing earnings report and huge market selloff. GoPro shares were down nearly 10 percent in pre-market trading after the company missed its Q4 revenue number and reported much lower-than-expected Q1 guidance.
Disappointments Aplenty
But perhaps the toughest pill to swallow for investors is that GoPro squandered yet another turnaround opportunity.
Last summer, CEO Nick Woodman told shareholders that their patience would finally be rewarded in Q4 when the company’s one-two punch of the Hero5 camera and the Karma drone would push GoPro out of the red and into profitability. Unfortunately, GoPro just reported a $115.7 million net loss in Q4.
Sayonara, Holiday Turnaround
So much for profitability. And so much for the holiday turnaround.
As usual, GoPro had plenty of excuses. Its botched Karma launch included a November recall for battery problems. The Karma was grounded before it even had a chance at the holiday season. And executives say the company was unable to deliver enough Hero5 cameras to retailers because of production issues.
Any Optimism Remaining?
There’s very little reason for optimism for GoPro shareholders at this point. Increasing competition already had…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
