GoPro tanks after missing on earnings (GPRO)

pulse

February 1, 2018 8:51 PM

Investors, both professional and retail, were mostly bearish ahead of the report.

GoPro reported its fourth-quarter earnings after the bell on Thursday.
Investors, both professional and retail, were mostly bearish ahead of the report.

GoPro reported a miss on earnings and revenue for the fourth quarter, and shares are trading down as much as 6.78% to $5.09 immediately after the report.

The company reported an adjusted loss of $0.30 per share, compared to Wall Street's estimate of $0.11 per share. Revenue came in at $334.8 million, missing estimates of $340.17 million.

Ahead of earnings, just one of the 11 analysts tracked by Bloomberg rated the company a buy, while seven rated GoPro a hold and three a sell.

Millennial traders weren't much much more optimistic. On the trading app Stockpile, users were selling shares 1.2 times more often than they were buying them, according to the company. About 16% of millennials who owned shares in GoPro sold stock ahead of the report, which was about five times the usual rate on the app.

Earlier this month, GoPro cut more than 250 jobs and left the drone industry entirely after it was forced to recall its Karma drone last year. A faulty battery connection could cause the drones to fall out of the sky during operation.

The company recently said it was working with JPMorgan to find a buyer for the company.

Shares of GoPro are down 26.61% so far this year and down about 42% since the company's last earnings report.

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