GoPro (GPRO) Sees Early Weakness as Company Temporarily Stops Shipping to Amazon (AMZN)

October 13, 2016 7:19 AM EDT
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Price: $14.93 +1.22%

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(Updated - October 13, 2016 7:37 AM EDT)

GoPro (NASDAQ: GPRO) is seeing early pressure after Piper Jaffray analyst Erinn Murphy highlighted that the action camera maker is not currently shipping to (NASDAQ: AMZN), which represents an estimated 12-14% of sales.

Following clarification Wednesday evening from GoPro management, Murphy said the company plans to resume shipping to Amazon at the end of October. Meanwhile, it has been shipping to Best Buy, other partners and their own channel.

If GoPro resumes shipping to Amazon by the end of October/beginning of November, the revenue shortfall would be less than their originally estimated $100 million which is predicated on four months, Murphy said.

"Nonetheless, this is a disruption of a key partner that we believe was not contemplated in guidance and we will continue to monitor the progress of this channel partner into the Holiday season," she said.

The firm reiterated their Underweight rating and $9 price target.

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