GoPro shares drop to below IPO price as analysts suggest demand for firm’s cameras is in decline
GoPro's share price has dropped to below its initial public offering (IPO) price, falling by over six per cent today to $23.56.
The point of view camera company floated at $24 per share in June 2014, and fared well on the Nasdaq for a while – making founder Nick Woodman a billionaire. However, the stock has dropped by over 60 per cent in the year to date.
Shares in GoPro took a tumble last month, after the company revealed third quarter revenues that fell short of expectations, despite climbing by 42 per cent to $400m (£263m).
Earnings per share of $0.13, up 30 per cent on the third quarter of 2014, also missed estimates.
Concerns over demand for the California-based company's products has taken its toll, with many analysts claiming that customers may be reluctant to fork out for its relatively expensive cameras.
Analysts have also said that the market for GoPro's products is nearing saturation. S&P Capital IQ analyst Angelo Zino said this was "probably the biggest issue" facing the company since its flotation.