Action camera manufacturer GoPro Inc (NASDAQ:GPRO) has struggled for more than half a decade, and that has been reflected in the spectacular decline in its stock price as well. However, in May, the stock performed impressively despite the overall turmoil in the markets and gained as much as 33.8% during the month.
It seems the stock got a boost from the announcement of its Q1 results, and in addition to that, the launch of a new accessory, as well as impressive digital sales, also contributed to the rally. The company published its quarterly results on May 7 and reported losses of $0.34 a share, which was in line with analysts’ expectations.
Sales stood at $119 million. The performance was significantly worse than the prior-year quarter, in which the company posted losses of $.07 a share and sales of $243 million. The performance was not impressive, but GoPro successes in reducing its operating costs and also grew the revenues from digital sales as a percentage.
On May 20, the company announced the launch of Zeus Mini, which is a waterproof lighting system and can be attached to a GoPro camera. The stock has continued it’s upwards moving in June as well, and so far this month, it has climbed by as much as 1.5%.
Considering the impressive rally in the stock and also the fact that it is still available at a discount, it might be worthwhile for investors to track the GoPro stock. The trade tensions between the United States and China are back, and GoPro’s decision to move its production facilities to Mexico can prove to be an inspired move.
The move to Mexico was made for exactly that reason, and it is believed that GoPro might also target the Mexican market for its sales rather than China. Moreover, the cost-cutting measures are not to be ignored either. It has slashed one-fifth of its workforce and aims to cut costs by as much as $100 million in 2020.