GoPro’s stock dropped 23.34 percent to 10.87 Wednesday afternoon after the company announced its Q4 was worse than expected. The stock was already trading at an all-time low. The stock briefly jumped to 11.20 before trading was halted. The company has a market cap of about $2 billion in after-hour values.
This came after the company announced it expects fourth quarter revenue will be $435 million and $1.6 billion for 2015. That’s under what the company had previously forecasted.
GoPro’s stock was already dropping as the company faced mounting pressure from investors to sell more cameras and find new revenue streams.
As such, the company is laying off 7 percent of its 1,500 people — about 105 people. As today’s press release states, GoPro had previously experienced an explosion of new staffing, growing at a 50 percent rate over the last two years. GoPro notes that it will incur about $5 million to $10 million as it restructures.
GoPro went public in mid-2014 with a stock price of $35 and quickly shot up to $89 a share. But since that high, the stock gradually dropped until the summer of 2015 when it lost over half of its value over several weeks. Investors are worried about the company’s ability to keep growing after its latest camera, the Hero 4 Session, failed to outsell previous models.
GoPro’s CEO and founder Nick Woodman was the fifth-highest paid CEO among U.S. public companies in 2015 with a total compensation package of $77 million, an increase over the previous year of 4,079 percent.
Interview with GoPro CEO Nick Woodman at Disrupt SF 2015