Shares of GoPro Inc. (NASDAQ:GPRO) are up close to 4% this morning in pre-market trading, after the company reported some good news and an analyst reported an upgrade. This couldn’t come as a better time for a stock that has seen its price beaten down over 50% in the past 52 weeks.
One of the announcements made by GoPro Inc. is that they will be restructuring some of the company, starting with the reduction in employees by 15%. This will see 200 employees lose their jobs, as the company shuts down its entertainment division. The efforts will aim at reducing 2017 non-GAAP operating expenses down to around $650 million. On top of the large employee layoff, the president of the company, Tony Bates, will be stepping down by year’s end as well.
This isn’t the only factor that appears to be effecting the surge in stock price this morning. GoPro (NASDAQ: GPRO) also reported that their sales of cameras have increased 35% year-over-year during Black Friday and 33% year-over-year for the period between Thanksgiving and Cyber Monday.
“Consumer demand for GoPro is solid and we’ve sharply narrowed our focus to concentrate on our core business,” CEO Nicholas Woodman said in a statement.
To continue piling the good news on for GoPro, analysts at Vetr increased their rating from “buy” to “strong-buy” this morning. They currently hold a $11.04 price target on the stock.
It will be interesting to follow the price of GPRO shares today as the market opens this morning. Holiday shopping isn’t over quite yet, and GoPro cameras seemingly will be a hot product this year.