GoPro’s stock, which had been hammered recently, began climbing back up last Friday, closing at $9.96. The stock had lost 46% in the last month and 82% in the past year. But it continues to climb after this morning’s opening bell.
The reason for the uptick is a licensing deal signed with Microsoft. Little is known about the deal other than it will grant access to certain file storage and other system technologies patents. Nick Psyhogeos, president of Microsoft Technology Licensing, said in a statement, “This agreement with GoPro shows the incredible breadth of technology sharing enabled through patent transactions . . . Microsoft’s licensing of personal wearable technologies is seeing strong demand as we partner with companies from all industries to optimize solutions for their customers around the globe.”
Analysts do not expect GoPro’s financials to improve any time soon (e.g.GoPro Continues to Spiral Down, Just as We Predicted at Barrons.com – Sat, Feb 6). Last week, the company forecast first-quarter revenue of $160 million to $180 million, compared to the year-ago quarter revenue of $363.1 million.
GoPro executives are pointing to drones as a logical next step in the companies evolution. Last week GoPro put out another promotional video for the drone, named Karma (see below). The drone will feature a camera that can take 360 degree picture. Whether they will beat drone giant DJI to the punch with this capability is yet to be seen. The Karma is scheduled to be released by mid 2016.
Frank Schroth is editor in chief of DroneLife, the authoritative source for news and analysis on the drone industry: it’s people, products, trends, and events.
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