GoPro (GPRO) Shares Are Crashing For This Reason

GoPro shares fell more than 20% in after-hours trading on Thursday after the company reported disappointing Q3 2016 results. Revenue for the company in Q3 fell almost 40%.

GoPro has also cut its full-year revenue expectation which left investors pretty unhappy.

According to CEO Nick Woodman, the fault falls on production issues with the company’s Hero5 camera and GoPro Karma drone. He believes the production problems, coupled with a lack of available Hero4 cameras on the market, hurt the company’s revenue in the second half of the year including the upcoming Q4.

Holiday season sales make up a big part of Q4 and with not enough Hero4 cameras available, the company’s expected best-seller, it’s no surprise the company made some cuts going forward.

GoPro still believes demand for its latest products is strong and that the company will return to double-digit growth in 2017.

Disclaimer: We have no position in GoPro Inc. (NASDAQ: GPRO) and have not been compensated for this article.