GoPro's stock investors are not having the time of their life while consumers are consuming the latest GoPro Hero5 Black and GoPro Hero5 Session products. Even with a new product launch, GoPro sales still went down by 40%. They reported this record loss last Thursday.
Despite optimistic statements regarding the new product line, GoPro's profit problems are predicted to remain in effect until next year. This is in stark contrast to their peak period in 2014 which was 88% higher than the current status of GoPro's earnings. Last year, they were valued at $400 million.
Two new camera products were launched last October. The GoPro Hero5 Black and the GoPro Hero5 Session are priced at $399 and $299, respectively. This recent product offering from GoPro has a built-in waterproof case, a departure from the Hero4 variety which required an external casing. The Hero5 Black is a bit larger than the Hero5 Session because of the touchscreen inclusion.
Photo of the Day! Kalea putting the #HERO5 to the test! Image via @GuruStunts #GoPro #GoProPets pic.twitter.com/Bxs4EuK6Hv
— GoPro (@GoPro) November 3, 2016
GoPro's dip in earnings is parallel to the downward trajectory that Fitbit's shares are also experiencing. Their new products also hit a snag when it was pulled out of Amazon in the middle of October. Price negotiations were the culprit for the sudden pullout of the GoPro Hero5 Black and GoPro Hero5 Session cameras on Amazon.
The GoPro team remains firm in continuing to tap various groups for their consumer base. They host events that provide presentations on editing opportunities with GoPro products. Such an event will be happening in Santa Monica in their partnership with Adobe.
The GoPro specifications continue to impress consumers with good quality even in the midst of challenges. Some salient features include cloud capability with a GoPro Plus subscription, good camera specs that can withstand hardcore physical activities in and out of the water, and a GPS system. However, it is still unknown if this is enough to save them in this looming net loss in 2017 onwards.
