Shares in GoPro plunged more than 10% in pre-market trading on Thursday after the action camera manufacturer reported fourth-quarter revenues that missed analyst expectations and issued a downbeat forecast for the current quarter. The stock was trading at around $1.20, down sharply from Wednesday's close, as investors reacted to the company's admission that demand for its cameras and accessories had softened considerably.
GoPro blamed the weak performance on a combination of factors, including a slowdown in consumer discretionary spending and heightened uncertainty surrounding US trade tariffs, which have raised costs for imported components and dampened retail sentiment. The company also noted that its subscription growth had plateaued, further weighing on revenue visibility.
The sell-off comes against a backdrop of broader weakness in US technology shares, with the Nasdaq Composite slipping 0.8% in early trade. Analysts at Wedbush Securities described the results as 'disappointing but not surprising,' pointing to a saturated action camera market and a lack of compelling new product launches. 'GoPro is struggling to reignite consumer interest,' they wrote in a note to clients.
For UK investors, the decline in GoPro's stock is a reminder of the volatility inherent in US-listed tech names, many of which are held within popular pension funds and investment trusts. While GoPro itself is a relatively small holding, the broader weakness in consumer electronics reflects wider pressures on global demand that could affect UK-listed tech and retail stocks. The FTSE 250 has already seen similar headwinds from UK consumer confidence data released earlier this week.
GoPro's challenges also highlight the ongoing impact of geopolitical trade tensions. The company said it was 'closely monitoring' tariff developments and had begun diversifying its supply chain, but warned that any further escalation could hurt margins. Rival action camera makers such as DJI have not yet commented on the situation.
Source: GoPro Q4 earnings release, Wedbush Securities analyst note, Bloomberg market data.