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GoPro's Path To Stagnancy In A Single Chart

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GoPro's Path To Stagnancy In A Single Chart
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  • Last Wednesday, GoPro Inc (NASDAQ: GPRO) issued disappointing fourth-quarter guidance and announced a 7 percent reduction in its workforce.

In a recent article, Statista Data Journalist Felix Richter explained why this could be read as a sign that “GoPro has trouble sustaining its growth.”

GoPro announced on Wednesday that it was cutting its workforce by roughly 7 percent. While management assured this was nothing else but a reallocation of assets, “it’s hard not to read something into it, when the company announces its first-ever quarterly sales decline at the same time,” Richter stated.

GoPro has been plummeting since that announcement, and is trading down more than 7.5 percent on Friday afternoon.

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On The Road To Stagnancy

Although sales have been surging consistently since 2010, revenue growth hasn’t. In fact, it seems like GoPro is finding it increasingly hard to sustain its growth. “While it’s normal for growth rates to come down after a period of massive growth, the drop off in GoPro’s rate of revenue growth is rather steep. The company’s stock has been under pressure since autumn, when the company had (twice) slashed the price of the ultra-compact HERO4 Session camera just months after its July launch,” Richter concluded.

Below is a chart comparing GoPro's sales and revenue growth since 2010. As it can be appreciated, the trends are pretty opposite.

Infographic: GoPro Has Trouble Sustaining Its Growth | Statista

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Image Credit: Public Domain

Latest Ratings for GPRO

DateFirmActionFromTo
Jan 2018Longbow ResearchDowngradesBuyNeutral
Nov 2017CitigroupMaintainsNeutral
Oct 2017Bank of AmericaMaintainsUnderperform

View More Analyst Ratings for GPRO
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