Deferment results to stock slide
With the decision of GoPro to defer the release date of its GoPro Hero 5, it caused the share prices of its stocks to slide.
Subsequently, its revenues also got affected and it is likely that the company may not be able to achieve its revenue target for 2015.
Despite the expected dip in its earnings this year, GoPro is not about to respond by hastily releasing the GoPro Hero 5. It will definitely stick to its pronouncement that it would not be released this year, but it is going to make it to the retail market next year.
The company is optimistic that the release of the GoPro Hero 5 next year would eventually arrest the temporary slide in the prices of its shares in the stock market and push its revenue earnings back or above projected levels.
GoPro Hero 5 is a very loaded action camera compared to its predecessors and it is the reason why the company is confident of a turnaround.
It is likely that the latest iteration to the GoPro Hero action camera may come out during the first half of next year since the company would surely not allow falling share prices of stocks and revenues to happen for a period of four consecutive quarters. The most that it can afford is three quarters of lower-than-expected revenues. Four consecutive quarters of losses is not good business sense at all, so GoPro would not allow that to happen.
GoPro action cameras are rugged little camcorders that brought action man’s action movies within the grasp of the ordinary man.