GoPro Stock Crashes on News of Layoffs and Potential Sale
It was revealed that the company would be pulling out of the drone business earlier today, but now the company is putting itself up for sale.
News revealed earlier today showed that GoPro wasn't in the best condition as a company. On top of dropping the price of the Hero6 camera, nearly 300 jobs were cut and the company declared they are leaving the drone business behind. That's not the end of the bad news, it seems. The company's stock has taken a nosedive and it turns out the company is putting itself up for sale.
CNBC reports that GoPro has hired JP Morgan Chase to help with the process of selling the company. GoPro CEO Nick Woodman says that he would consider a partnership as well.
"If there are opportunities for us to unite with a bigger parent company to scale GoPro even bigger, that is something that we would look at," Woodman said.
I spoke with our financial analyst and CEO, Asif Khan, about the news of GoPro's sale and here is his Game Trader Hot Take:
"GoPro's stock now values the company at less
"Don't buy the company just because they are trying to sell. They have hired JP Morgan to try to sell the company. They don't currently have any bids that they are able to acknowledge. This appears to be a desperation move for a company with terrible margins and a dwindling competitive advantage. It is not outside of the realm of possibility that another company would acquire the brand, but that is hard to believe given the company's current financial state. They are unprofitable and still trade well above their book value. This is a purely speculative stock at this point and
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replyCharles Singletary posted a new article, GoPro Stock Crashes on News of Layoffs and Potential Sale
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The WiFi and RTSP capabilities built into their cameras were unique at the time. They basically took a security camera controller and built it into a consumer camera. I will admit that in the age of IOT, they are no longer unique. And I’m probably part of the problem in that I never saw the need to buy one.
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Not a lot of demand for that functionality, I'm thinking. I know when I was looking at sports cameras, I was looking at something that records tolerably good video to an SD card in a weather resistant chassis, not something that can stream over WiFi and RTSP and will survive at the bottom of a lake for a year.
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God I have 3 GoPro's and the software is so abysmal, I am consistently shocked by it. The actual recording is alright, the battery life blows but the video that comes out is decent.
I've been considering abandoning the whole platform and just buying a bunch of Google Pixel 2's, I strongly suspect as action cams with their video stabilization they are just better devices to use as an action cam.-
How does the video stabilization of the pixel compare to the video stabilization of the most recent go pros or the Rylo 360 camera?
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Nevermind, found some videos
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It's really weak. The software and firmware seem incredibly bad on each iteration.
That new 360 camera company that Ender has mentioned in the past is where the future is in action cameras. Good hardware with amazing, seamless software.-
Link for the lazily curious (which includes me): https://www.rylo.com
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Always a great sign when your stock goes down on the news you are trying to sell the company...
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I remember some famous investor a few years ago who took a huge short position on gopro because he said their camera were basically like the toaster. Eventually tons of companies will be making them, none of them making much money, and there won't be a market for a camera so expensive
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Aren't theirs still the best? Just too expensive
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