GoPro cut Hero price and will stop drone business

GoPro Inc. has dropped sales and will stop the drone business. The San Mateo-based company said on Monday that fourth-quarter earnings will be lower hit by weak demand for cameras and plan to stop the drone business. The company now expects fourth-quarter revenue of US$340 million, compared with November's projection of US$470 million.

The Wall Street favorite has seen a fall in demand for Karma cameras and drones for several quarters and plans to cut more than 250 jobs while restructuring. The company's shares, which were previously discontinued, have dropped 33 percent to a record low at US$5.04.

GoPro said the drop in drone demand was due to strict regulations in Europe and the United States which would likely reduce market share for drones in the coming years. Morgan Stanley said Hero camera price cuts will make revenue growth more difficult in fiscal 2018.

"Despite significant marketing support, we found consumers were reluctant to buy HERO5 Black at the price one year earlier," said GoPro CEO Nicholas Woodman.