GoPro Inc share value has depreciated quite a lot this year. The current financial period has seen the stock of the U.S. camera maker fall by 44 percent so far. Analysts have said that this is due to shareholders feeling “skittish” about the firm’s ability to fend off big name rivals like Apple. Furthermore, GoPro’s share plunge trend is predicted to keep up right through end of this year’s 4th quarter.
From GoPro’s recent $35 share value, analysts from Barron’s have forecasted a further $10 plunge. This would leave the camera maker’s shares at an estimated $25 value at the end of the financial period.
GoPro is a “One-product Wonder”
The start of this week had GoPro’s shares fall by 6 percent. Over the years, GoPro’s major flaw has been competition and its inability to innovate itself, says Alexander Eule. He described the firm as a “one-product wonder”. The camera maker was also compared to the once popular Blackberry devices which have lost their massive popularity due to product complacency.
Apple Poses a Massive Threat to GoPro
Analysts have suggested that Apple Inc. could consider acquiring GoPro . This is according to the BusinessInsider. Apple is said to have more than enough resources to take on GoPro as an additional arm. Though Vertical Group’s Jon Lopez was quick to shut the idea down, saying the probability of the buyout taking place has a “zero percent chance”.
When news got out that Apple had got a patent of GoPro earlier this year, shares soon dropped by 12 percent. Investor are nervous about the iPhone maker’s capacity to cast a formidable shadow over GoPro. Other products, too, are set outdo the action camera firm. China’s Xiaomi has reported that it is working on a 16-megapixel device. The product will be much like those of GoPro, only significantly cheaper.
GoPro’s product complacency has been a warning point of analysts for some time. The firm’s stock rose by 31 percent when it first went public in June of 2014. Last Friday had the firm’s stock sitting at $35.15. It has experienced a 52 week high $98.47. Monday’s opening saw GoPro’s stock fall below $33 within hours of opening.
The firm has refused to comment on analyst statements.