Published: Thu, January 11, 2018
Medical | By Jackie Banks

Longbow Research Gives GoPro (GPRO) Lower Rating; Lear (LEA) Sentiment Is 0.92

Longbow Research Gives GoPro (GPRO) Lower Rating; Lear (LEA) Sentiment Is 0.92

This news comes a little while after the action camera manufacturer unveiled news that it was going to go out of the drone business and after laying off a portion of its workforce.

Wittine explains that even with questionable timing, as this month has a real chance to signify a "low point" in the tech company's investor sentiment this year, with the analyst pointing to "multi-prolonged 2018 product cycle" and "cost cut benefits", before tomorrow's investor meeting at the worldwide Consumer Electronics Show (CES), he simply can no longer advise to buy this stock. The camera maker also confirmed the report of job cuts we heard about last week, but there could be even bigger changes in store for GoPro than just another round of restructuring.

GoPro has had a hard couple of years, as it faced intense competition and poor performance in the drone market. GoPro's stock immediately plunged roughly 30%, reaching as low as $5.04 at one point before recovering a little.

The Karma drone was meant to be GoPro's next big product when it launched amid much fanfare in 2016.

The company's share price plummeted amid the disappointing reports. They say that they will continue to provide service and support to Karma customers for the time being. They also attributed their decision to "a hostile regulatory environment in Europe and the U.S." which they believe "will likely reduce the total addressable market in the years ahead". We're now hearing that the company could be trying to sell itself, but would anyone buy GoPro in its current state? The company now estimates its fourth-quarter sales at about $340 million, while it previously had been expecting about $480 million in sales.

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She was selected for Staffordshire Moorlands in July 2006 and was returned to Parliament at the general election in 2010. Greening said: "Clearly, there are immediate challenges".

Additionally, GoPro said it is pulling the plug on its Karma drone business after more than a year of false starts, product stumbles and disappointing sales.

GoPro also announced that Woodman would reduce his 2018 cash compensation to $1.

According to Woodman, GoPro's new hardware and software plans, coupled with lower operation expenses should allow the company to be profitable again.

A source told AFP that GoPro hired JPMorgan Chase to advise it on strategic options, including a possible sale.

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