GoPro’s uh-oh: $100m+ short on revenue, out of the drone biz, and potentially up for sale
Yesterday, adventure camera maker GoPro announced their preliminary Q4 results — and the numbers were a hell of a lot less pretty than the scenery in their promo videos.
As a result, GoPro stock plummeted by as much as 33%, the biggest drop the company’s ever seen.
Yikes… how bad was this report?
Well, they missed their projected revenue ($470m) by more than $130m, largely thanks to a decision to slash prices on some of their cameras. So, pretty bad.
The company also dropped the news that they’re killing off their entire drone business, just a few months after introducing Karma — a device beleaguered with controversy since it literally dropped out of the sky back in November of 2016.
Shortly after going public in 2014, the company’s stock hit a high of $98 per share. Since then, shares have continually declined, bottoming out at just $6 yesterday.
Once valued at over $11B, the company is now worth around $1B, thanks to lackluster camera sales, plus swings-and-misses on new products.
Now, according to CNBC, they’ve hired JP Morgan to help them entertain interested buyers: “If there are opportunities for us to unite with a bigger parent company,” said CEO Nick Woodman, “that is something that we would look at.”
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