Action camera manufacturer GoPro Inc (NASDAQ:GPRO) has threatened to make a comeback of sorts multiple times over the past few years, but this comeback has not come to pass. GPRO stock has plummeted over the past year by 42%.
After having lost ground for years, the stock is trading at levels below $3.50 a share at this point. In such a situation, it might be worthwhile figuring out whether GPRO stock is worth watching. The stock has already tanked by 25% in 2020 so far.
Moderate Rise in Revenue
GoPro has not been able to grow its revenue in recent years beyond the $1.2 billion mark, and analysts believe that revenue is going to decline in 2020. That being said, it should be noted that in 2019, GoPro managed to grow its revenue by 4% year-on-year.
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CEO Nick Woodman stated that GoPro experienced a rise in direct sales from its website. Moving ahead, GoPro is confident about the sales of its Hero 8 Black and Max models. This year, the company aims to boost its profits considerably, and one step that it has taken is to move a production facility to Guadalajara in Mexico in order to cut costs. It remains to be seen if this has been helping to boost the bottom line.
GPRO stock is trading lower by 8.65% to $3.38.
Despite a range of launches from GoPro over the years, the company has continued to lose market share. Moreover, the action cameras that are sold by the company are often in a very high price range for customers in emerging economies, which means it can be difficult for GoPro to dominate many of the biggest markets in the world.
Optimists might say that people loyal to the brand could continue to buy GoPro products, but an action camera is not like a smartphone, and it is unlikely that people are going to upgrade every year. In the eyes of some, GPRO stock might not be a pick for long-term investors, but what do you think?
Featured image: DepositPhotos © Thomaspajot
