Why GoPro is excellent but it is difficult to plunge
After releasing the latest quarterly earnings report a few days ago, GoPro’s share price unexpectedly ushered in a 13% decline, and the momentum of this plunge seems to be difficult to stop.
GoPro, a sports camera product that has been “acquired” and “closed” for several times in the past year, has been actively taking self-rescue actions since last August: from GoPro Hero 7 series to exposure a few days ago. The Gopro SPJB1, and the launch of the $4.99 Plus subscription service each month, revealed a full life expectancy. These positive moves also caused GoPro to climb to the highest point on May 15 after reaching a trough in January 2019 (up to 73%).
However, for the next three months, GoPro’s share price has plunged, with a drop of more than 40%.
Maybe GoPro’s top executives didn’t even think about it. The original second-quarter earnings report, which was still a bit of a bright spot, caused a 13% plunge on the day of the August 2 release.
The high-profile earnings report triggered a sharp fall in stock prices
From the data of the financial report, GoPro’s second-quarter revenue increased by 3.4% year-on-year to reach $292.4 million. The equivalent of the adjusted earnings is $0.03 per share. In addition, the net loss narrowed to $11 million, compared to $37.3 million in the same period last year. In the face of positive gains, GoPro also raised its 2019 revenue forecast. However, both figures are lower than the expectations of some well-known analysts, which expect revenue to reach $0.04 per share and revenue of $302 million.
Therefore, although GoPro’s second-quarter results have met its expectations and demonstrated its adjusted (non-GAAP) profitability trend, these positives have not been able to appease the market. As the parties analyzed the sound, GoPro’s share price then fell.
All said that the house leaks even rain, just when the market needs confidence, on August 7, GoPro announced the company’s insider trading situation: company director Ahmad-Taylor Tyrone sold it on August 5th Holding 4,189 shares. These news continued to trigger a fall in stock prices, which ended up at a new low of $4.31 on Friday.
GoPro shares have plummeted more than 40% since mid-May
We don’t really sigh the myth that the company once had a market value of $13 billion in 2014. As far as its market value of only $608 million is concerned, it’s likely that there will be a “acquisition” message. .
In the narrow market, stick to the small and beautiful GoPro, why did you come to today’s field?
In all fairness, GoPro’s achievements in the first half of 2019 are still worthy of the management’s inspiration. Moreover, from the perspective of performance growth, this well-known brand of sports camera that has fallen to the bottom of the valley will play a lot of new tricks in the next half year, especially in terms of technological innovation of new products, which has already hanged a lot of loyalty. The appetite of fans.
Therefore, although the second quarter earnings are not very dazzling, GoPro has improved its annual guidance, indicating that management believes that the second half of the year will be even stronger. GoPro has increased its full-year business forecast for 2019, with revenue expected to grow by 9% to 12% (previously forecast between 7% and 10%) and adjusted earnings per share of $0.40.
In a statement about the financial statements, CEO Nick Woodman said the company will maintain healthy channel inventory levels through continued sales momentum and rely on “a new launch later this year.” Products” to achieve these goals.
It’s a pity that investors who have lost confidence in GoPro seem reluctant to believe in these good news, and even pessimistic about the company’s performance in the next six months, which triggered a sharp fall in stock prices.
Confidence is full of commitments in the second half of the year
In the conference call after the earnings report, Woodman continued to reveal his confidence in the 2019 annual results. He said: “As the demand in all regions continues to grow, our global channel inventory is at an appropriate level. I believe the company is ready to launch new products later this year that will lead to better results. After identifying our upcoming fall product lineup, our distributors and retail partners are responding to these new products.