GPRO earnings

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The Biggest Reason the GoPro Stock Price Will Keep Falling in 2016

go pro stock

It's another terrible day for the GoPro stock price, as it's down more than 11% in intraday trading to an all-time low of $9.01.

The stock is falling after GoPro Inc. (Nasdaq: GPRO) reported a hefty loss in Q4 and low guidance for the rest of 2016.

And while those factors are sending the GoPro stock price lower today, there's an even bigger factor that will continue to pressure GPRO stock.

But first, here's a closer look at the terrible earnings figures...

Should I Buy GoPro Stock After Earnings?

GoPro stock

GoPro stock is trading just above its all-time low today (Wednesday), opening at just $10.28 per share today. That's why many investors are contemplating buying into GoPro stock now that it is trading at such a "discount."

For the answer, we turned to Money Morning Chief Investment Strategist Keith Fitz-Gerald. He's a seasoned market analyst and professional trader with more than 30 years of global experience who has been following GoPro stock closely since the IPO.

But first, here's what to expect from the GoPro earnings report...

GoPro Earnings Smash Estimates - but Don't Buy GPRO Stock Now

GoPro Earnings

The GoPro earnings report for Q4 2014 was released today (Thursday) and the camera company smashed estimates.

GoPro Inc. (Nasdaq: GPRO) reported earnings per share (EPS) of $0.99 on revenue of $633.9 million. Analysts had predicted EPS of $0.70 and revenue of $580 million.

While today's earnings report certainly looks bullish at first glance, GPRO stock is not a good investment according to Money Morning's experts.

In fact, it's facing a major problem that's only growing larger. And it's been weighing on the stock since October...

GoPro (Nasdaq: GPRO) Stock's Most Important, Overlooked Number

GPRO Stock

GoPro Inc. (Nasdaq: GPRO) stock jumped as much as 8% in afterhours trading today (Thursday) after the company reported earnings per share (EPS) of $0.12 for the third quarter. Analysts had been expecting EPS of $0.08.

As expected, GoPro's camera sales were strong and contributed to the earning's beat.

But as we've been saying at Money Morning since the GoPro IPO, the story with this company is not its camera sales.

There is another key figure that tells us more about this stock...

GoPro Earnings Report: GPRO Stock's Success Not Tied to Revenue, Sales

GoPro Stock

GoPro Inc. (Nasdaq: GPRO) stock is under the microscope today (Thursday) as the company reports earnings after the bell.

Analysts are expecting earnings per share (EPS) of $0.08, on revenue of $263.5 million. Those numbers will move the stock tonight and tomorrow, but there's a much more important long-term factor to watch.

In fact, this part of the company's future plans will dictate GPRO stock's long term success...