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GoPro stock price tanks on Apple patent announcement

Up until about a year ago, camera maker GoPro was the go-to piece of equipment that action enthusiasts flocked to in order to capture their outdoor exploits. But in the meantime ,a decent amount of companies have launched their own cameras – putting some pressure on the American firm.

That pressure became more prominent late yesterday, as news emerged that Apple has been granted a patent for its own action camera. The filing was made in 2012 and incorporates technology from Kodak, but was only approved yesterday.

When news of the patent broke, GoPro’s stocks took a 15% beating almost immediately, closing at $48.29 per share. The stock price was sitting at $57.20 five hours earlier when the markets in the US opened for trading.

While the patent has shaken investor confidence in GoPro, Dougherty & Co analyst Charlie Anderson told Bloomberg that Apple will more than likely only use the patent to allow Apple users to remotely control the camera on their iPhone, through Apple’s Watch.

“GoPro has done well, but we’re talking about four million units and $1 billion in revenue in the past year. Apple doesn’t do things with single-digit millions of units in mind,” he added.

In September GoPro launched a cheaper, low-end version of its best-selling action gadget. Simply known as ‘Hero’, the matte grey model will have most of the Hero 4’s functionality stripped out, and will only be able to record video in 1080p, instead of 4K.

Prior to that, the company unveiled its new flagship model, the GoPro Hero 4.

At the time of writing, GoPro’s stock price recovered somewhat, predicted to reach as high at $50.61 in after-hours trading.

[Source – Bloomberg]

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