$GPRO GoPro cuts price of new camera for second time in 5 months
GoPro (NASDAQ:GPRO) on Friday slashed the price of its new Hero 4 Session camera for the second time in five months, hoping to stoke demand for its action cameras during the holiday shopping season.
The move came after Ambarella (NASDAQ:AMBA), which makes image processing chips for GoPro cameras, signaled weakening sales in the action camera market late Thursday. While Ambarella beat Wall Street's views for fiscal Q3 sales and earnings, it forecast sales for the current quarter below consensus estimates. Ambarella CEO Fermi Wang said that the company is facing near-term headwinds in the wearable sports market.
GoPro leads the market for wearable action cameras that capture video and still images in high resolution. But it faces increasing competition and worries about market saturation. On Friday, GoPro cut the price of its tiny Hero 4 Session camera to $199 from $299, calling the device a "game changer."
GoPro launched the Hero 4 Session on July 12 for $399. The company cut the price to $299 on Sept. 28 amid reports of sluggish sales. The Hero 4 Session is about the size an ice cube and weighs 2.6 ounces.
"The waterproof Hero 4 Session is so durable and easy to use . .. it's the perfect way to capture rough-and-tumble family activities this holiday season. From snowball fights to snowboarding, the footage will look so immersive, you'll feel like you're reliving the experience," Nick Woodman, GoPro's founder and CEO, said in a statement. "I'm stoked that for just $199, everyone can GoPro this holiday season."
GoPro stock hit an all-time low of 17.55 on the stock market today. In late morning trading, GoPro stock was down 3%, near 18. GoPro went public in June 2014 at 24 and traded as high as 98.47 in October 2014.
Robert W. Baird analyst William Power on Friday lowered his rating on GoPro stock to neutral from outperform and cut his price target to 18 from 36. He cited increasing concerns over the lack of sales growth for his decision.
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