GoPro Experiences Fall in Sales
GoPro has been witnessing a consistent fall in the share value, after the better than expected quarterly results that the company announced in the first week of February, delighting the firm and investors alike. The unexpectedly good sales of the action cameras in the holiday season resulted in the unusually high 4Q earnings which made the company hopeful about the company future in the stock market.
Ever since that, the GoPro’s share price has been seeing a decline that has now started to worry investors. Among the many reasons that are said to be the reason for the company’s falling stature, one of the most prominent is the fact that the action camera makers gave a cautious guidance which created a feeling of uncertainty amongst the investors. Another reason which resulted in the fall in shares is the uncalled for and unexpected resignation of CEO Nina Richardson.
After the successful 4Q earnings, the investors directed their attention towards the expiration of lock-up time. Originally, the lock-up time was meant to expire in December of 2014. But the investors were seen to have added an additional time period of sixty days to the lock-up session after taking part in the secondary sale of the shares. The investors believed the value of the stock will increase more, keeping in mind the exceptionally high short interest rates.
After an active trading activity in which the shares of the company increased by a massive 12%, the share value saw a sudden steep decline in the very next session which resulted in the company losing all the gains that it had previously collected.
GoPro Inc (NASDAQ: GPRO) h
as been following a quiet pace at the trading house lately, something that was seen to have completely changed due to the last session that the company had. The shares of the company fell by a huge 5%, making the bears winners in the betting business.
The company is experiencing this level of decline in the share value the 2nd time, the first time being in August 2014. If by the end of the trading session the stock ends up at a six-month low price, then the investors should be warned as this indicates that this downfall in the trade that the firm is following will continue for some time.
Some investors have even become prominent in selling off huge pieces from their GoPro ownership, even though the company has lost around 55% from the highest price it has reached so far.
