GoPro share price tumbles to lowest point since IPO
GoPro shares have plummeted over 17 per cent since revealing sales falling short of expectations yesterday.
The camera company’s share price was down to $25 in early Wall Street trading. This is just a dollar above the initial offering of $24 – and the lowest point since listing in 2014.
The sell-off follows yesterday’s disappointing earnings, as GoPro posted revenue up 43 per cent over the year yesterday, to £262m. Although this growth might sound impressive, it fell far short of analysts’ expectations of £283.4m.
Yesterday’s earnings fuelled investors’ fears that the wearable camera market has already peaked.
The company’s chief executive and founder Nicholas Woodman said that business was “clearly more difficult than anticipated”.
GoPro, now expecting fourth quarter sales to reach $500-550m, has had shares tumble 52 per cent since the beginning of the year.