GoPro posts surprise quarterly loss; trading of its stock is temporarily halted

California State Teachers Retirement System now owns 165,358 shares of the company’s stock worth $2,978,000 after buying an additional 2,586 shares in the last quarter.

GoPro had given guidance for Q4 last month that was below expectations. More worryingly, the forecast for next quarter is $160 million, way down from the $300 million previously anticipated.

GoPro shipped more than 6.5 million HERO series action cameras in 2015, up 27 percent year-over-year, and announced a cumulative total of over 20 million units since 2009. Piper Jaffray dropped their target price on shares of GoPro from $15.00 to $9.00 and set an “underweight” rating on the stock in a report on Thursday, January 14th.

GoPro had a less-than-spectacular quarter at the end of 2015.

For the year, the company reported profit of $36.1 million, or 25 cents per share. The final quarter of 2014 was a massive one for GoPro because, in addition to being the holiday season, it was the first full quarter where customers had a chance to buy the flagship Hero 4 Black and Silver cameras. GoPro executives however remained bullish during the earnings call in which GoPro CEO Nicholas Woodman tried to dismiss worries expressed by analysts and investors that the company’s business was no longer growing due to competitive threats and the company’s inability to market its products to a wider audience beyond its core consumers.

Shares were halted for news pending just before the earnings announcement. It is expected that despite the company’s improved advertising efforts in the fourth quarter, it won’t be adequate and will therefore result in lower than expected revenue. The company says sales tripled after the price cut, and they’ve now shipped over half a million of the tiny cameras.

In light of this, the company will no longer manufacture their cheaper lines – the Hero, Hero+ and Hero+ LCD.

In December a year ago, the group re-priced its Hero4 cameras, which dented the firm’s overall sales.

Analysts have said that GoPro’s software was hurting sales of its action cameras, as users could capture smartphone footage and more easily edit and share it with friends. Also, the company showcased its first-ever drone Karma that would be launched sometime in the first-half of this year. The results were a disappointment to analysts who hoped GoPro could keep its earnings neutral. Ambarella shares closed Wednesday down 1.6% at $37.43, with a consensus analyst price target of $74.60 and a 52-week trading range of $34.60 to $129.19.