Shares of GoPro Inc. fell 4% in premarket trade Wednesday after analysts at Citigroup lowered their outlook on shipments and said their surveys indicate fewer consumers are planning to buy action cameras this year as they switch to drones and find alternate means of producing virtual reality video. The analysts reduced their forecast on GoPro shipments to 9.3 million units by 2018, down from 10.6 million units previously. "Awareness of GoPro and its content is increasing (and now stands at 72%), but exposure to content is less likely to drive a purchase, and fewer respondents are describing the content as being 'appealing,'" said Citi analyst Jeremy David. Just 5% of U.S. consumers said they plan to purchase an action camera in the next 12 months, down from 7% a year ago, according to Citi's annual action camera survey of U.S. consumers. GoPro has been working to diversify its business, including buying virtual reality company Kolor in April and announcing plans last month to build a four-rotor quadcopter drone. Its shares have risen some 50% over the last three months.
Copyright © 2015 MarketWatch, Inc.
Continue Reading Below