Why Camera Maker GoPros Shares Could Plunge
GoPro could soon face an extreme problem the already battered video-camera maker's stock could fall an additional 29. That's a prediction that Barron's is floating in a new story about the hardware company, which has cultivated a cult following among extreme sports fanatics that use GoPro devices to share daring feats. GoPro's shares jumped 31 when the company debuted in June 2014, though even with that bounce, skeptics wondered if the company could fend off competitors that could bring similar products to market at lower price points. GoPro's share price peaked at 98 in October 2014, but has spent much of this year in decline, with the stock now trading at around 35, back at the level it achieved when GoPro launched its IPO. Barron's asserts more woes are to come. It says one-hit wonders such as GoPro don't fare well over time, as other players permeate the market. The publication points out that when a camera-related patent was issued to Apple, the news sent GoPro's shares down 12 when that news was reported. That's how sensitive the stock is to worries about competitive fears. More recently, when Apple gave details about the company's new iPhone cameras, GoPro's shares slid again.