GoPro Inc. (NASDAQ:$GPRO) saw its shares plunge 14% in early trade today. What happened? Well, the San Mateo, California-based company can blame the analysts that were weighing in on its earnings for this one.
According to a number of investment firms, the holiday season is going to be extremely crucial for the company to meet goals. GoPro might have reported stronger-than-expected Q3 numbers, but guidance was below consensus, which disappointed investors greatly. However, Raymond James (NYSE:$RJF) analyst Tavis McCourt has kept his market perform rating on the stock, and said the recent quarter was “good all around.”
Due to the increased number of product launches scheduled for 2018, McCourt believes GoPro “has its operations moving in an appropriate direction.” He added: “However, this trend will depend on the success of the holiday quarter, and the 2018 outlook could change meaningfully if holiday demand does not meet expectations.”
J.P. Morgan (NYSE:$JPM) analysts also joined the conversation, stating GoPro is still operating on “less than full-throttle” with lean inventory to reach predictable growth, increased profitability, and rebuild its balance sheet. “GPRO stock might trade down a bit today on the weaker-than-expected 4Q guidance, but this will present a buying opportunity ahead of a de-risked 4Q, CES, and easy 1Q18 y/y comps, in our view,” they wrote.
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