Has GoPro Reached Rock Bottom Yet?

GoPro Inc GPRO has been a closely watched stock for bargain hunters as the company's shares have fallen nearly 80 percent over the past year. Trading just over $10 per share, the action-camera maker's stock could be a money maker if the firm is able to recover from a difficult 2015.

However, this isn't the first time investors believed GoPro had reached rock bottom— last year, there were several calls to snap up GoPro shares but the firm only continued to fall further. Now, investors are looking at the company's long-term strategy with a critical eye wondering whether $10 per share is a bargain or a huge risk.

The Case For GoPro

GoPro has struggled due to the public's lack of adoption of high-definition action cameras. Better quality smartphone cameras coupled with new, lower-cost competitors offering similar options have weighed on the company's sales.

However, to combat those obstacles, GoPro has begun to expand its business to include other products like drones, 3D cameras and feature-rich software. These new offerings could help the company overcome last year's sales slump and revive the brand name.

Related Link: Piper's Murphy: GoPro Has 34% Downside

Not only is GoPro looking to branch out, the firm is also upping its advertising spend, saying that part of the reason for its decline was its lack of focus on marketing. Now that the initial buzz surrounding action cameras has faded, the company has to prove to customers that it is more than just a fad.

GoPro's Shortcomings

While GoPro's efforts to up its marketing game are valiant, many believe it could be too little too late. Excitement around GoPro cameras has faded, and customers are unlikely to return to the devices no matter how much the company spends.

Another concern is whether things like drones and 3D cameras will catch on with the general public. Some believe that such technology is already crowded and that only a fraction of the market will be interested in buying in.

A Takeover Target?

It remains unclear whether GoPro will be able to revive itself in the coming year, but the firm's recent slide has sparked rumors about a possible takeover. There are plenty of companies who would benefit from GoPro's camera business, leading some to speculate that the company could find itself in the middle of a bidding war in the not-so-distant future. The possibility of GoPro being acquired could make a good case for investors to buy in now while share prices are low.