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GoPro takes a beating in after-hours trading on news of job cuts

By Shawn Knight
Jan 13, 2016
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  1. GoPro's stock is taking a beating in after-hours trading after the action camera maker on Wednesday said it is reducing its workforce by roughly seven percent. As a result, it will incur restructuring costs of up to $10 million in the form of severance packages.

    GoPro said in a statement that it expects revenue to be approximately $435 million for Q4 2015 and $1.6 billion for the calendar year (some analysts were expecting as much as $511 million in revenue during the quarter). The company said the Q4 results reflect lower than anticipated sales due to slower than expected sell through at retailers.

    Analysts point to the launch of the Hero4 Session as a sore spot. The petite camera went on sale July 12 priced at $399.99 although in late September, GoPro slashed that price by $100. Even still, analysts at Morgan Stanley labeled the compact camera a flop. To help spur sales, GoPro docked another hundred bucks off the Hero4 Session 4 in early December, bringing it down to just $199.99.

    GoPro said today that it'll incur a $21 million charge related to the price reduction.

    The popular action camera maker made its debut on the stock market on June 26, 2014, priced at $24. Share value hit an all-time high in early October of that year at $86.97 before dropping to its as-of-writing value of just $14.61 (an all-time low).

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  2. Uncle Al

    Uncle Al TS Evangelist Posts: 1,663   +772

    It always amazes me how the so called "marketing experts" can blow one like this one, yet I'm willing to bet they will be the LAST to be furloughed from their job. Sadly, in most corporations today there are jobs that really are wasted. Marketing, HR, and a few more that the lean and mean companies are learning to eliminate and not only save money, but avoid some bonner decisions that only a bean counter can really appreciate ... oh yeah, bean counters would be on that list too!
     
  3. ikesmasher

    ikesmasher TS Evangelist Posts: 2,553   +854

    Once someone has a go pro they are not going usually to buy the new model next year. Gopros are both niche and expensive. The price tag scares any curious (but not one who particuarly NEEDS a go pro) buyers away. This seems obvious but what do I know.
     
    Skidmarksdeluxe likes this.
  4. umbala

    umbala TS Addict Posts: 169   +145

    I guess GoPro thought they were like Apple and their phones. They thought they could release a slightly better camera each year at the same exorbitant price point and *****s would gobble it up. Obviously this is not happening.
     
  5. p51d007

    p51d007 TS Evangelist Posts: 909   +385

    I never understood the desire for the gopro. Over priced, overhyped, but, in this self centered,
    self absorbed world, it's to be expected.
     
    Skidmarksdeluxe likes this.
  6. VitalyT

    VitalyT Russ-Puss Posts: 3,149   +1,424

    Case in point, a marketing person would sell you any camera he's got, including his personal one, his mom's and the ones he doesn't have yet. If you put me, a software developer into his shoes, I'd rather keep them all. Do you really want me in sales?
     
    Skidmarksdeluxe likes this.
  7. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 6,476   +2,034

    Like me, I don't think you'd last very long in that position. Not only would a slick, greasy salesman throw his moms camera into the deal but her as well.
     
  8. stewi0001

    stewi0001 TS Evangelist Posts: 1,181   +528

    "Everything is for sale my friend, everything! If I had a sister, I'd sell her in a second!"
    -Belethor (Skyrim)
     
  9. RustyTech

    RustyTech TS Guru Posts: 865   +434

    "After Hours Trading"
    Another illegal activity that is being ignored.
     

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