The company was trading around $6 in early morning trading, after opening 2018 at $7.60 a share.
While consumer drone leader DJI makes headlines at this week's CES with new products, GoPro announced Monday it would pull out of the drone business after it sells its remaining stock of Karma drones. The Karma drone, once hailed as GoPro's savior before launching late and suffering a recall, is no more.
The camera maker expects $340 million in revenue, marking a 37 percent drop from a year ago and falling far short of Wall Street estimates for about $472 million, according to an analyst survey by FactSet. GoPro said it expects sales for the quarter that ended December 31 to be $340 million, a 37 percent decline from the same period a year ago. Apple would certainly have the cash to buy GoPro this year, especially if it repatriates a massive chunk of the cash hoard it has overseas, as most analysts generally expect it to do.
However, prices rebounded sharply following a report from CNBC that the company has hired JPMorgan to find a buyer.
On Monday, GoPro said sales struggled during the critical holiday shopping season.
"GoPro is committed to turning our business around in 2018", Woodman said in the statement. On January 7, GoPro lowered the price of its premium model, HERO6 Black from Dollars 499 to USD 399.
He hoped the actions would return the firm to profitability in the second half of 2018.
In its statement today, GoPro also cited the hard regulatory regimes in the U.S. and Europe as the reason why it doesn't think the drone market will be lucrative in the long term. We're now hearing that the company could be trying to sell itself, but would anyone buy GoPro in its current state? Its holiday results were downright terrible, and its disastrous attempt to enter the drone market is the kind of mistake that well-run companies seldom make.