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GoPro Stops Shipping To Amazon; Sees YTD Gains Wiped Out

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GoPro, known for their wearable cameras, announced Thursday that it would temporarily stop selling its newest camera, the HERO5, to Amazon. Prior to that, GoPro shares were down 15 percent the past week. What’s going on? Is GoPro in trouble?

Why GoPro Stops Shipping To Amazon

It’s been a rough year for GoPro, Inc. Sales have been slipping and the company has seen its share price cut in half. And after losing millions in discounts and unsold inventory from the Hero4 camera, analysts and customers have been skeptical about what GoPro can do. But the camera maker has been busy with new ideas. The question is, are those ideas enough to bring GoPro back to glory?

About a month ago, GoPro launched its Hero5 camera to much acclaim. Shares rose by 20% on the news. GoPro was hot again and investors were happy.

What happened?

Well, reality set in. The overinflated stock crashed back down. In fact, GoPro shares dropped 15 percent in the past week, wiping out its year to date gains. On top of that, GoPro is pinning its hopes on the soon-to-launch Karma drone. The problem there is that the Karma isn’t the only drone (or even best drone) in the marketplace. That honor belongs to the Mavic, by drone maker DJI, the industry leader in drones.

That’s kind of like Google creating a social media platform to compete against Facebook. Oh wait….

And now the company has temporarily halted sales of the HERO5 to Amazon.com as the two companies renegotiate pricing. GoPro says the move is intentional, as Amazon is selling below the price floor. They depend on Amazon for about 14% of its total revenue.

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So what now?

Hero5|GoPro Stops Shipping To Amazon; Sees YTD Gains Wiped Out

image via GoPro

GoPro says they will resume shipping on Amazon in early November. But the move could still cost millions and hurt company shares. However, with the holiday season approaching, their sales should meet expectations. On top of that, GoPro has other product success, such as Pixelio, a 3D scanner that combines the GoPro with an iPhone to create a personal 3D scanner.
Watch this news on CNBC:

GoPro shares will bounce back with the holiday season upon us, but don’t expect huge gains. Avoid GoPro, Inc. (GPRO) until Amazon sales are back on.

Samsung Note7 falls but how Samsung face this fight? Check our yesterday news and find out.

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