The stock lost 38% of its value in the last one year, losing 28% since the beginning of this year. Meanwhile, camera sales declined almost 9% in 2017 and fewer people opted to upgrade their devices due to lack of meaningful add-ons.
To beat the declining volume, the company has been cutting down on its operating expenses, which has now started biting back. Gross margin dropped as much as 25% in the fourth quarter of 2017. And yet, the cost-cutting measures don’t guarantee that they would reverse the declining shipments.
GoPro’s latest attempt to salvage the company from the on-going crisis was to find a buyer. It had even approached JPMorgan (JPM) last year to help the company find a prospective buyer. But as it turns out, nobody cares! The company said they could not find even a single serious bidder. Shares were down almost 3% after the news.
The stock lost 38% of its value in the last one year, losing 28% since the beginning of this year.
Even if the company manages to find a buyer, it has a line-up of rivals to beat – including Garmin (GRMN), Xiaomi and Sony. Even Apple (AAPL) with smartphones featuring high-end cameras is a company to look out for. And with the kind of innovation the company has displayed so far, the result of a technological face-off is a no-brainer!