What Happened?
Shares of action camera company GoPro (NASDAQ: GPRO) jumped 9% in the afternoon session after it clarified in a press release that it expects its diversified supply chain to soften the blow of U.S. tariffs. As a result, the company doesn't expect the new tariffs to affect its prices in the U.S. or hurt its gross margins for goods shipped to the U.S. Brian McGee, CFO and COO added, "Over the last few years, we proactively moved our U.S.-bound camera production outside of China, which has significantly reduced the impact of tariffs."
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What The Market Is Telling Us
GoPro’s shares are extremely volatile and have had 42 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock dropped 10.3% on the news that the company announced plans to cut its workforce by 26% as part of an updated restructuring plan, up from the initial target of 15%. A restructuring plan is often part of initiatives to improve business efficiency, leading to improved cost savings and a better liquidity profile.
GoPro is down 12.3% since the beginning of the year, and at $0.96 per share, it is trading 67.8% below its 52-week high of $2.99 from February 2024. Investors who bought $1,000 worth of GoPro’s shares 5 years ago would now be looking at an investment worth $232.48.
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