Shares of GoPro Inc dipped by more than 6% during Wednesday’s trading session after Alphabet’s Google announced their plans to introduce and unveil a smart video camera in line with their efforts to expand their hardware business.
The stock of the action camera maker declined during in the mid of the trading session after the internet and advertising technology company revealed a clip-on camera which will be called Google Clips. Along with this announcement, Google also announced that their upcoming Pixel 2 and Pixel 2XL smartphones to be released later this year would be having improved cameras.
On the other hand, Google Clips will allow users to take photos automatically during the day. The clip-on camera will use an artificial intelligence engine that detects smiles and other things that it will be programmed by. According to Google, the device is set to get smarter as time goes by.
Google shares which traded down by more than 5% from having opened at $11.06 per share traded later during the day at around $10.39.
In August, the company posted an upbeat second-quarter earnings report that beat most analyst estimates sending its shares trading by up to 12% higher. The earnings report which revealed a jump of 19% in their revenue also revealed the company’s plan to continuously cut costs in their efforts to boost their own numbers. These efforts include cutting around 200 jobs.
GoPro also announced during the earnings call that the strong demand for their products along with their cost-cutting efforts have helped improve the financial performance of the company during the second quarter.
In the midst of the company’s growing competition, it recently revealed its latest GoPro Hero 6 line which is the most up-to-date GoPro model which will offer 4K video resolution. GoPro also unveiled its latest Fusion camera which features spherical lenses that allow users to take wide videos which GoPro chief executive Nicholas Woodman to be the ‘first of its kind’.
Last month, the company gave a rosy outlook for its upcoming third-quarter report sending its shares up by around 17%. According to the company, the upcoming launches would boost their sales just in time for the holiday quarter. The company previously forecasted a weak earnings outlook for their upcoming earnings. GoPro, later on, reversed this statement stating that the growing demand for its action cameras as well as its drones will reduce its inventory in the coming months.
Join the best forex broker and follow us for more up to date news and latest stock market news.