GoPro (GPRO) Declines on Concerns About China Competition

GoPro (NASDAQ: GPRO) shares declined Friday, falling about 6% on concerns Xiaomi is entering the action camera arena in China. In the view of Oppenheimer analyst Andrew Uerkwitz, the rumored launch will have a negative impact on GoPro and limit potential growth the region.

"Xiaomi announced a surprise product release event for March 2nd ... based on the limited information, we believe it is a very portable camera product with the following features: 1) waterproof (or with waterproof case); 2) accessories system that allows users to attach the camera to different objects for different use cases (even onto a Frisbee); and 3) easy sharing of captured content," said Uerkwitz.

Uerkwitz add, "we believe China will no longer offer any material growth potential for GoPro if Xiaomi releases an action camera. Xiaomi's consistent highperformance, low-cost product positioning, integrated software and cloud service, and tight users community all pose formidable challenges for GoPro in China."

Oppenheimer has an Underperform rating on GoPro (NASDAQ: GPRO).

For an analyst ratings summary and ratings history on GoPro click here. For more ratings news on GoPro click here.

Shares of GoPro closed at $44.66 yesterday.

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