Shanghai based BNP Partners says stock in wearable camera maker, GoPro, plunges after the company issued weaker-than-expected forecasts for fourth quarter revenues as sales its devices slumped despite a program of incentives including cutting the price of its latest camera in half.
GoPro’s stock fell sharply and, after a brief suspension in trading, fell almost 20% in after hours trading.
The release said that GoPro anticipated $435 million in Q4 revenues and $1.6 billion in revenue for the whole of the 2015 calendar year, way short of the $521.2. million Wall Street analysts had expected. The San Mateo, California-based company also revealed a plan to cut 7% of workforce in order to reduce costs and improve efficiency.
“The 7% cut amounts to about 100 jobs and will cap what has been a dreadful year for the company whose stock once traded as high as $90 shortly after its high-profile IPO,” said Gerald E. Powers, Chief Investment Officer at BNP Partners.
By Thursday morning, shares of GoPro Inc. had fallen by $2.35, or 16%, to $12.26. GoPro's stock has lost more than half of its value since it made its debut on the stock market in February 2014 at $24 per share.
“We think the end of the year will tell us once and for all whether GoPro was just a fad because it will have entered the drone market and rolled out its new Hero 5 camera. The consensus here at BNP Partners is that the days of silly stock values are over for this company,” concluded Powers.
About BNP Partners:
At BNP Partners, they define effective wealth management as an overall strategy that seamlessly integrates their clients’ personal ROI (return-on-investment) aspirations with their investment management prowess.
Whilst today’s markets can often demonstrate the type of characteristics that have served to hamper the efforts of many traditional investment methodologies to secure the returns they once did, BNP Partners continue to secure exceptional returns for their esteemed clients utilizing a meticulously applied combination of those same traditional methods whilst diligently complementing them with new, pioneering techniques.