Investors are seeing the shares of GoPro Inc., fall more than 4.1% on Friday after the company announced that it has temporarily stopped the sale of its latest camera model, the HERO5, on Amazon.
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Amazon temporarily out of stock HERO5 and Session
Investors and customers are wondering why Amazon is out of stock on HERO5 and Session cameras. The answer is simple – discounts are already in place for the newly released cameras. One reason why pricing on e-commerce platforms like Amazon may concern GoPro is that brick-and-mortar retailers like Best Buy and Target are known to match competitor price on these products.
September or early October is a slow sales month anyway as people gear up for the holiday season.. – Andrew Uerkwitz, Analyst for Oppenheimer
According to U.S investment bank, Piper Jaffray, GoPro currently relies on the Amazon for approximataly 12% to 14% of its revenue. Meanwhile, Reuters reported that GoPro plans to resume supplying the cameras to Amazon at the end of October or early November 2016.
While GoPro was reportedly unhappy about Amazon listing the camera for less than the agreed-upon price, GoPro told Ace+ Media that they will resume shipping to Amazon in just a few weeks.
GoPro today announced that it will release its financial results for the third quarter of 2016, ended September 30, 2016, after the market closes on November 3, 2016. GoPro management will host a conference call and live webcast for analysts and investors on November 3, 2016 at 2 p.m. Pacific Time.
