GoPro Inc (NASDAQ:GPRO) stock plunged by more than 5% in the early trading hours today today in view of a report published by Barron’s yesterday that weighed in bearishly on the company. Shares for the company hit their peak in October 2014 at $98 a share. With a market cap of $4.4 billion GoPro, Inc.
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Before the market open on Monday, the stock declined to as low as $33.65 per share.
The article went on to state that GoPro may not have the ability to stave off competition if and when a major competitor entered the video camera space, for example Apple.
GoPro’s Hero action cameras are a “one-product wonder” much like BlackBerry’s (NASDAQ:BBRY) once-popular smartphones, Barron’s Alexander Eule said.
GoPro shares fell by more than 6% to start the week. Barron’s highlights that investors are well aware of this considering that in the past nine months, shares of GoPro have declined in the light of Apple-related news.
Also, the Chinese manufacturer Xiaomi announced a 16-megapixel camera that was similar to and much cheaper than GoPro cameras.
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Although some analysts think Apple could be an acquirer of GoPro, Vertical Group, an independent research firm mentioned in the Barron’s report, said Apple has “ample resources to build the product in-house”.
