GoPro Stock Plummets Thursday

GoPro is amidst its biggest plunge to date. The maker of wearable cameras nosedived by over 16% Thursday to its lowest price since its initial public offering.

The stock is not just on track to have its worst overall day ever, but is coming very close to its price of the IPO of $24.

The amazing story of GoPro is in the process of crashing to earth, as the market for extreme sports lovers who have money for the devices must not be big enough.

The sales of GoPro that were defying gravity are coming back too fast to earth. Sales exploded by 72% during the second quarter, but have slowed to only 43% the past three months and now GoPro has warned that sales will contract during the upcoming holiday season.

GoPro has always struggled to go beyond the extreme sports ecosystem. It is not that the camera as not good. By nearly every account, they are extraordinary devices. The big problems however is that GoPro is struggling in its attempt to expand beyond a niche market and into mass appeal.

GoPro investors believe it is in the sweet spot, but the sweet spot, said on analysts is not enough all be itself. The market he added needs to be broader.

GoPro late Wednesday dropped like a bomb when it posted earnings and revenue that missed its targets badly.

Fears about the future of GoPro became amplified by the business saying that holiday sales would tumble.

GoPro first burst onto Wall Street back in June of 2014, when shares were sold to a public, that was growing more and more fascinated by the brand. The stock then skyrocketed with it more than quadrupling in only four months.

However, investors have quickly realized that the hip, young, athletic audience that the camera appeals to is not representative of what is the typical consumer in the U.S.

GoPros are not cheap. However, they are becoming less expensive and that is alarming those on Wall Street.