The stock market has reacted to GoPro’s falling sales figures. Yet, GoPro CEO defends company as stock drops, despite revenue rising by 19%.
Tuesday saw GoPro’s stock price drop by another 3%. The drop comes following what has been a turbulent month for the camera makers.
GoPro announced their results from the first quarter of 2017 in April. Figures confirmed that the company had shipped fewer products than their investors had hoped. Total unit sales stood at 730,000, despite being estimated at 805,000 at the start of the year.
GoPro’s quarterly revenues surpassed expectations. Yet, those figures did little to convince investors that the company is recovering from what has been a tough few years.
GoPro’s market cap peaked at over $10 billion back in 2014. Yet, it has lost almost 90% of its value over the last three years.
GoPro CEO defends company as stock drops
Despite the huge losses, GoPro CEO Nick Woodman has insisted that the company is still going strong. With revenue in Q1 meeting expectations, he is sure that Q2 will provide similar results.
“We feel good about the second quarter, and we think that things are tracking just as we shared on our earnings call,” Woodman stated on Tuesday, as the stock price fell. “We’re really happy with the turnaround that we’re seeing in our business.”
Despite falling sales, Woodman stated that the new HERO5 camera, released last year, was selling well around the world. The HERO5 device ranks as the best-selling digital camera in the United States, Europe, the Middle East and Africa. Yet, investors are far from eager to invest.
What has caused GoPro’s spectacular decline?
After losing 50% of its market value in 2016, GoPro will be hopeful that they can halt their losses in 2017.
The main cause was a decline in sales of their famed action cameras. GoPro had control of the market upon launch in 2002. However, a number of rivals have since released their own action cameras. While the GoPro brand remains desirable, many people are now opting to buy cheaper options.
Despite attempts to increase interest by releasing a number of new products, such as a 360-degree camera named ‘GoPro Fusion’, sales have been poor. The ‘GoPro Karma’ drone had better results, but a mass recall due to an issue with the device’s battery halted sales.
Woodman remains confident that he can return GoPro to the top, but investors do not share his hopefulness.