Personal Finance

Why GoPro, Inc.'s Shares Popped 22% Today

GoPro Hero camera.

What happened

Shares of action-camera maker GoPro, Inc. (NASDAQ: GPRO) jumped as much as 22% in trading Friday after reporting second-quarter 2018 results. Shares were still up 19.3% at 3:15 p.m. EDT and seemed to be holding.

So what

Revenue was down 5%, to $283 million, and net loss on a GAAP basis dropped 22%, to $37.3 million, or $0.27 per share. On a non-GAAP basis, the loss was $20.8 million, or $0.15 per share, better than the $0.22 loss analysts were expecting.

GoPro Hero camera.

Image source: GoPro.

The thing investors are getting excited about is CEO Nick Woodman's statement that "GoPro will be profitable in the second half of 2018." After years of losses and poor product launches, returning to profitability would be big for the company.

Now what

Woodman has had high hopes of getting GoPro back to profitability before, so I take that projection with a grain of salt. What's different this time is that the company won't be relying on new products, like a drone, to drive revenue and margin. But the company still needs to gain traction with its next-generation Hero camera, which will be launched this fall.

If the new Hero product takes off, the company could easily post a profit, but a few products have flopped in the last few years . Investors should be cautiously optimistic for the second half of the year.

10 stocks we like better than GoPro

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and GoPro wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of June 4, 2018

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends GoPro. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Personal Finance Videos

Black Friday Brings Higher Demand and Scarcer Deals

Nov 26, 2021

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More