GPRO - Nobody Wants To Buy A GoPro Anymore

2024-05-18 01:12:09 ET

Summary

• GoPro's poor financial performance, including declining sales and net losses, has led to a 70% decline in stock price.
• The first quarter results show a continued decline in sales and weak demand for GoPro's hardware.
• The acquisition of Forcite Helmet Systems and the multi-year transformation project have not shown significant impact or potential for a turnaround as of now.
• We maintain our sell rating.

GoPro, Inc. ( GPRO ) develops and sells cameras, mountable and wearable accessories, and subscription services and software in the Americas and internationally. We have started writing about GPRO in June 2022 and expressed our bearish view on the firm. This view has been reiterated in August 2023. Both times poor financial performance, including deteriorating sales, increasing expenses and net losses and a lack of demand for GPRO’s products, has been cited as the primary reasons. Since our first article, the firm’s stock price has declined by more than 70%, significantly underperforming both the broader market and the consumer discretionary sector....

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