GoPro Inc (NASDAQ:GPRO) is having fresh trouble brewing on its horizon as it sits at the center of a lawsuit over the design of its Hero4 Session. Tech Crunch reports that GoPro Hero4 Session looks very much like the Polaroid Cube and that the maker of the Polaroid Cube, C&A Marketing, has filed a lawsuit against GoPro for copying the design of the Cube. C&A Marketing was said to have obtained the patents for the design two months before GoPro released Hero 4 Session.
The shares of GoPro have been facing serious headwinds lately and now the firm has to contend with a lawsuit pending in court. GoPro itself has had to fend off knockoff cameras that clone its design on market places such as eBay and Amazon. In the last one year, the shares of the camera maker have dropped by 70.1% and the stock has lost 60.1% in its share price in the year-to-date period. After the news about the lawsuit broke, the shares of GoPro dropped more than 2% to close below a $25 trading price on Tuesday.
Wall Street losses Interest in GoPro
The shares of GoPro (NASDAQ:GPRO) has suffered so much in 2015 and investors are starting to lose interest in the stock. More so, it appears that sales are starting to stall as the consumer electronic market starts to show more interest in drones than action cameras. Analysts at Piper Jaffray were the first set of people to be vocal about their growing lack of interest in the prospects of the firm.
Last month, Piper Jaffray analyst, Erinn Murphy downgraded the stock after its earnings report because it appears that Wall Street is set on punishing the camera maker even more. She downgraded the stock from a “Neutral” rating to an “Underweight” rating and the slashed her price target on the stock from $25 down to $20. The main reason for the downgrade was that GoPro has large inventory, which suggests that its cameras are not flying off the shelves at a decent speed.
GoPro needs to win back Wall Street
GoPro was once a darling on Wall Street but the firm has fallen from grace. It needs to put a concerted effort to winning back Wall Street. It was reported that the firm has made two new hires in the hopes that they’ll be able to inject some life into the firm.
GoPro (NASDAQ:GPRO) is trying to foray into the content side of its business instead of being a firm that makes great cameras – it wants to use those cameras to shoot great content. The firm has hired Hulu’s Charlotte Koh to head up a newly created department, features and series.
The firm has also hired HBO Sports veteran, Bill McCullough, to serve as executive producer for the company’s team-sports and motor-sports channels. It remains to be seen though, if those new hires would be able to turn the ship around for GoPro.