The Holidays Have Come And Gone, As Have GoPro's Hopes Of A Seasonal Boost

Holiday season 2016 has come and gone, and GoPro Inc GPRO shareholders must stomach another disappointing earnings report and huge market selloff. GoPro shares were down nearly 10 percent in pre-market trading after the company missed its Q4 revenue number and reported much lower-than-expected Q1 guidance.

Disappointments Aplenty

But perhaps the toughest pill to swallow for investors is that GoPro squandered yet another turnaround opportunity.

Last summer, CEO Nick Woodman told shareholders that their patience would finally be rewarded in Q4 when the company’s one-two punch of the Hero5 camera and the Karma drone would push GoPro out of the red and into profitability. Unfortunately, GoPro just reported a $115.7 million net loss in Q4.

Sayonara, Holiday Turnaround

So much for profitability. And so much for the holiday turnaround.

As usual, GoPro had plenty of excuses. Its botched Karma launch included a November recall for battery problems. The Karma was grounded before it even had a chance at the holiday season. And executives say the company was unable to deliver enough Hero5 cameras to retailers because of production issues.

Any Optimism Remaining?

There’s very little reason for optimism for GoPro shareholders at this point. Increasing competition already had GoPro fighting an uphill battle in both the camera and drone markets. Even down 81.9 percent in the past two years, the stock is still a huge risk at this point.