By Sarfaraz A. Khan. Research Asst. M. Arslan
Summary:
GoPro’s latest quarterly results came in better than market’s expectation.GoPro
dominates the action camera market and has a real opportunity for growth as a video
content provider. However, there are serious concerns regarding this company
and its stock.
GoPro
(NASDAQ:GPRO), which makes its cameras for adrenaline junkies, has taken its
shareholders on a roller coaster ride in less than two months of trading.
In the first
few days of trading, the company's shares climbed by 55% in the first couple of
days of trading until the beginning of July, dropped by 10% over the next two
weeks, soared again by 23% until the end of July, and are down by 8.6% since
then.
The company
has recently released its quarterly results that were better than market's
estimates, but its shares have fallen by 7.2% since the day of the earnings
release. And it still doesn't look like a good investment.
Second
Quarter
In its
quarterly results, GoPro reported 38% year-over-year increase in revenues to
$244.6 million, better than market's expectations of $238.1 million, on the
back of 30.8% increase in shipments to 854,000 units. The company said that it
benefited from an uptake in demand of its products as well as improvement in
its relationship with the large distributors.
The net loss
ballooned from $5.1 million a year ago to $19.8 million in the second quarter
of this year. In adjusted terms, excluding the impact of one-off-times, the company
swung to a profit of $11.8 million from …. Read full article at Seeking Alpha.
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