GoPro Inc: Is GPRO Stock Back on Top?
- Buz Investors GPRO Stock Back on Top Following a ringing endorsement of its drone business from an analyst, GoPro Inc (NASDAQ:GPRO) is on the rise, with GPRO stock up almost eight percent as of late-morning trading on Tuesday.
- Pacific Crest Securities analyst Brad Erickson raised estimates for GPRO stock’s drone shipments up to 150,000, which will result in a revenue contribution of $88.0 million for FY2017, according to his projections. (Source: “GoPro (GPRO) Drone Shipment Estimates Raised At Pacific Crest,” StreetInsider, January 24, 2017.)
- Erickson couched the good news with the bad, saying that there will likely be losses and burned cash in 2017, but he believes that GoPro management could hedge against these negative outcomes by further reducing the company’s workforce.
GPRO Stock Back on Top
(NASDAQ:GPRO) is on the rise, with GPRO stock up almost eight percent as of late-morning trading on Tuesday." width="300" height="233" srcset="https://i2.wp.com/investorsbuz.com/wp-content/uploads/2017/01/gpro-stock-300x233.resized.jpg?resize=300%2C233 300w, https://i2.wp.com/investorsbuz.com/wp-content/uploads/2017/01/gpro-stock-300x233.resized.jpg?w=618 618w" sizes="(max-width: 300px) 100vw, 300px" />
GPRO Stock Back on Top Erickson couched the good news with the bad, saying that there will likely be losses and burned cash in 2017, but he believes that GoPro management could hedge against these negative outcomes by further reducing the company’s workforce. Here’s part of Erickson’s statement below that led to the recent surge in GPRO stock:
In light of better-than-feared sell-through, we are raising our unit estimates by a bit more than 10% to 2.1 million units in Q4 from 1.9 million and are raising our ASP estimate slightly as our store checks showed an impressive ability to pivot point-of-purchase displays to selling the Karma Grip ($300 electronic stabilizer) when it became clear the Karma would not be launched.
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GPRO Stock Back on Top
Further, we are removing Karma from our Q4 estimates and now expect volume shipments to begin in 2Q17.
Still, this is good news for a company in dire need of some. In 2016, GPRO stock fell by over 52%, which is a poor showing for a company that some investors are concerned has maxed out its consumer base. With the introduction of drones and other devices beyond GoPro’s staple of cameras, some were hopeful that the company would be able to stage a rally. While by no means a sure thing, Tuesday’s estimate increase and the subsequent stock jump are still welcome news for GPRO stock enthusiasts.