GoPro Stock Takes Another Hit
Sales of GoPro drones continue to disappoint shareholders as the company missed another sales target in the last quarter of 2016. After having to recall the Karma drone during the third quarter – after having been on the market for just three weeks – the company hoped to bounce back at the tail end of the year with a sales target of $574 million, leading up to the Christmas period.
The embarrassment of the recall, which came about due to customer complaints about airborne power failures, may now be seen as the catalyst for consumer wariness. While the share price managed to exceed Wall Street’s prediction of 22 cents per share – the actual price reached 29 cents – the company’s sales fell short of the target of the stock market’s target by $33 million.
GoPro now claims that the Karma drone’s battery issues have been resolved, and hopes that sales will pick up after its recent relaunch. Shareholder confidence, however doesn’t reflect the company’s optimism, with the stock market plunging by 13 percent in after-market trading.
The reason for this market pessimism is perhaps unsurprising to those who have followed the rise of China’s leading drone manufacturer, DJI. In terms of global sales, DJI continues to cement its position as the market leader, and has recently launched an aggressive pricing campaign to see off its competitors. This has already seen two of the industry’s smaller names – Parrot and 3D Robotics, announce a strategic shift away from drone manufacturing.
Nonetheless, there are still signs of hope for GoPro, which announced an 86 percent rise in views of its YouTube platform – an improvement of 35 percent on last year’s figures.