GoPro (NASDAQ: GPRO), an American manufacturer of action cameras, continues to disappoint investors due to the lack of attraction towards customers. Analysts anticipate the company will rebound once they release their commercial drones sometime this year, specifically the “Karma”, a 360-degree camera drone that was announced last year.
On Wednesday, the company’s shares plummeted over 23 percent to 10.87 just after the announcement of its fourth quarter, which was much more of a disaster than anticipated. The company has already been trading near its all-time low. The company reached its 52-week low on Thursday at 11.26 a share. GoPro also released that they expect its fourth quarter revenue to be $435 million and $1.6 billion in revenue by the end of last year. Which was below the projection of what the company had in mind.
GoPro’s fourth quarter revenue indicated lower than expected demand of its action cameras due to sluggish sales mainly by retailers, especially during its first half of the quarter.
“GoPro’s stock was already dropping as the company faced mounting pressure from investors to sell more cameras and find new revenue streams. As such, the company is laying off 7 percent of its 1,500 people about 105 people,” wrote Matt Burns, a Senior Editor at TechCrunch. “As today’s press release states, GoPro had previously experienced an explosion of new staffing, growing at a 50 percent rate over the last two years. GoPro notes that it will incur about $5 million to $10 million as it restructures.”