Shares of action camera maker GoPro Inc (NASDAQ: GPRO) fell 11% in March, according to data provided by S&P Global Market Intelligence, as the company made seemingly desperate moves to grow sales. After a disappointing year in 2017, this year isn't shaping up to be much better.
Continue Reading Below
The first deal announced in March was a licensing agreement with Jabil, the manufacturer who makes GoPro's cameras. The company will be able to use GoPro's technology to sell hardware to third parties, targeting video conferencing, robotics, and self-driving cars.
Late in the month, GoPro launched a $199.99 entry-level camera called Hero with the same form factor as the Hero6 Black and a 2-inch touch display. The camera replaces the Session cameras that never quite caught on in the market.
I wouldn't be surprised if the new Hero camera is a big hit, but it will hurt GoPro's average sale price this year. If customers downgrade from the $399.99 Hero6 Black to the Hero camera it'll be a big loss, and I'm not sure any volume increase will make up for the lost sales.
GoPro is trying to get back on its feet after three years of disappointing results and product flops (remember the Karma drone). But the market isn't seeing a licensing deal and a low-price camera as the things that will make GoPro profitable again, and that's hurting the stock right now.
10 stocks we like better than GoProWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and GoPro wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of April 2, 2018