Introducing GoPro (NASDAQ:GPRO), The Stock That Slid 52% In The Last Three Years
GoPro, Inc. (NASDAQ:GPRO) shareholders should be happy to see the share price up 23% in the last quarter. But that is small recompense for the exasperating returns over three years. In that time, the share price dropped 52%. So it is really good to see an improvement. While many would remain nervous, there could be further gains if the business can put its best foot forward.
See our latest analysis for GoPro
Given that GoPro didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last three years GoPro saw its revenue shrink by 7.9% per year. That is not a good result. The share price decline of 22% compound, over three years, is understandable given the company doesn't have profits to boast of, and revenue is moving in the wrong direction. Having said that, if growth is coming in the future, now may be the low ebb for the company. We don't generally like to own companies that lose money and can't grow revenues. But any company is worth looking at when it makes a maiden profit.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. So it makes a lot of sense to check out what analysts think GoPro will earn in the future (free profit forecasts)
A Different Perspective
It's nice to see that GoPro shareholders have gained 24% (in total) over the last year. That certainly beats the loss of about 22% per year over three years. The optimist would say this is evidence that the stock has bottomed, and better days lie ahead. Before spending more time on GoPro it might be wise to click here to see if insiders have been buying or selling shares.
But note: GoPro may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.