The trend of GoPro, Yahoo and Twitter seems worrisome in the US stock market. Their investors suffered a great loss as well.
MarketWatch made analysis why these three firms suffered share prices decline. It also estimated whether they will weclome the favorable turns in 2016.
In 2015, the share price of GoPro sharply decreased by over 70%. Its share price was under its issue price $24. There is no sign that GoPro will receive the favorable turn.
GoPro reported its latest Earnings in October that its profits worthed less and net profits were far from expectation. For example, the net profit of each share was $0.25, while its expected net profit is $0.29 for each share. It predicted to have a $433 million gross income, while it received $400 million gross income.
It offered special discount for Hero 4 Session to stimulate Christmas holiday sales recently. And Robert W. Baird decreased its target share price from $36 to $18. Morgan Stanley and Citigroup gave GoPro share degradation as well.
MarketWatch pointed out that GoPro might launch new electronic product to hit the market in 2016. However, the space for receiving a favorable turn is limited.
Twitter reported the worst Earnings in April. Its share price suffered great loss since then. And it carried out the staff reduction plan and appointed new CEO this year. The investors concerned its future. But some are positive for its developing.
The montly active users growth of Twitter is only 11% based on its latest report,while the seasonal growth is only 1%. Twitter faces much pressure to obtain more profits.
Concerning the trends of Twitter share in 2015, it has difficulties to receive favorable turns in 2016.
Yahoos investors hope to be split-off from Alibaba group. Accroding to the latest news, Yahoo will keep holding about $30 billion worth of Alibaba share in order to avoid high tax burden. It made pressure to Yahoos share price.
Yahoo received $271 million for mobile internet service in the past quarter, accounting for 22% of its total revenue in last quarter. However, its expected earnings of 2015 is $4.88 billion, is fewer than the earnings in 2012.
Its digital media encountered troubles as well. For example, its original video plan suffered difficulties. It had to write off $42 million assets.
There will be high risks to invest Yahoo in 2016. Many investors might hold the wait-and-see attitude.