The action camera manufacturer GoPro Inc (NASDAQ:GPRO) has had a turbulent ride over the past few years, and GPRO stock has had a major nosedive over the past half a decade or so.
After having reached its all-time high back in 2014, GPRO stock has declined by as much as 90% over the past five years.
Q3 Earnings Review
In the third quarter of the current fiscal year, the company generated revenue of $131.2 million, which was a far cry from the $285.9 million it had generated in the prior-year period. It was the second time in a row that the company’s revenue for the third quarter declined.
Losses for the period stood at $74.8 million, which was the seventh loss recorded by GoPro in the previous eight quarters. That presents a bleak picture of a company that is clearly struggling to turn its business around, and this is being reflected in GPRO stock price as well.
Hence, it is important to take a look at what GoPro is trying to do in order to turn its business around. The company has not come up with any new strategy at all and continues to launch new products in the hope of making a grand rebound.
At the time of writing, GPRO stock is down 1% at $4.10
The HERO 8 and MAX, two products launched this year, were supposed to be the basis of the company’s turnaround, but those two products make up for only a tiny percentage of its sales. The 54% drop in revenue year-on-year is an indication of the fact that it has not worked so far. Turnarounds need a clear vision and clear roadmap from a company, but GoPro has not managed to devise such a strategy yet. Hence, GPRO stock be watched carefully before coming to any decision.
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