GoPro slumped as much as 33% to $5.04 per share, its lowest price since its IPO in 2014. However, by the close, it had recovered to settle 12.77% lower at $6.56. The sharp slump was mainly attributable to weaker-than-expected revenues in the important holiday period. During the fourth quarter, the group’s sales came in at only $340m, much lower than its own previous estimates of $480m and missing analysts’ forecasts of $472m. The fall might have also have been prompted by the announcement the group is putting itself up for sale. Or the decision to take an $80m hit and discontinue its Karma drones and the Hero line of cameras. It could also have been the announcement it would cut more than 20% of its work force. In response to the dismal announcements the CEO, Nick Woodman, previously one of the best compensated executives in the US, has cut his salary from $287.2m per year to $1.
In currencies, a stronger greenback weighed on the local pair, with the rand erasing some of its recent gains. The dollar managed to find its feet after a lackluster December performance. After a previous close of R12.33/$, the local currency started poorly, weakening to a low of R12.458/$ at 14:00. From there, the rand recovered some of its losses to R12.421/$ at 17:00, before continuing to strengthen overnight. The local currency hovered just above R12.38/$ this morning.
Asian indices are higher this morning, buoyed by the recent rally in global markets and a stronger dollar. The Japanese Nikkei featured among the top performers, with the index gaining 0.48% to 23,826.93 index points. Earlier on in the session, the Nikkei added as much as 0.8% to reach its highest level since November 1991. The Hang Seng extended the recent run of gains, with the index up 0.41%. The Shanghai Composite is somewhat more subdued after it only managed to add 0.08% by the break, underperforming a 0.2% increase in the Australian ASX.
Don’t miss the action: Sign up today and receive FREE research, trade ideas, company insights, market views and exclusive seminar invites direct to your inbox.