A recent Wall Street Journal article highlights how quickly GoPro may have transitioned from a growth stock to a value stock to a value trap in just over a year. As GoPro shareholders continue to wait for the company’s next growth driver, potential buyers will likely focus more on the company’s slumping revenue than its attractive valuation metrics.

Growth Dries Up

After averaging 47 percent year-over-year revenue growth over the past eight quarters, GoPro recently projected that Q4 revenue will come up 17 percent short of last year’s number.

GoPro was hoping that its new Hero4 Session camera would drive Q4 growth this year, but disappointing sales and multiple price cuts have reduced the price of the new device by 50 percent since its launch in July. The price cuts might help move units during the holiday sales period, but they also likely mean that the company’s historically high 40-plus percent margins will take a big hit.

The Value Argument

GoPro’s share price has fallen…

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