GoPro stock sinks back below $1 billion market cap after poor outlook

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GoPro Inc.'s market cap slipped back below $1 billion again on Friday after the sports camera maker's forecast fell short of Wall Street expectations.

GoPro Inc.’s market cap slipped back below $1 billion again on Friday after the sports camera maker’s forecast fell short of Wall Street expectations, but some analysts see the company heading in the right direction.

GoPro faces inventory issues, a common refrain in this earnings season from consumer-electronics makers, as retailers are left with devices that didn’t sell in the holiday season. Wedbush analyst Alicia Reese, who has an outperform ratings and reduced her price target to $8 from $9, said in a Friday note that GoPro’s retail channel was the “primary culprit” of the mediocre results and “soft” first-quarter outlook.

“GoPro should continue to see a revenue and gross margin lift as it expands subscription attach rates at both retail and DTC over the long-term, while partially offsetting near-term retail softness,” Reese said. Citi Research analyst Jim Suva, who has a sell rating and a $4 target price, said GoPro saw “the expected pressure from the destocking efforts of consumer electronic retailers.”

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