GoPro shares fall the most in a month on Monday, Goldman Sachs downgrades the stock to a “sell”

GoPro shares plunged almost 8% during Mondays session, following Goldman Sachs decision to downgrade the stock from “neutral” to a “sell” amid concerns over demand for the companys core products. The financial holding also revised down its price target for GoPro’s stock to $6.00 from $9.50 previously.

GoPro shares retreated for a third straight trading session on Monday, while also marking their largest daily slump since February 3rd. The stock went down 7.92% ($0.70) to $8.14, after touching an intraday low at $7.95 and also the lowest price level ever recorded. The previous record-low was at $8.54, registered on December 15th 2016. In the week ended on March 5th the shares of the tech company lost 6.26% of their market value compared to a week ago, which marked the first drop in the past three weeks. The stock has extended its slump to 13.40% so far during the current month, following a 12.56% decrease in February. The latter has been the fourth retreat out of five months. For the entire past year, GoPro shares lost 51.64%.

“GoPro faces significant challenges following saturation of its core action cameras market, product rollout issues in the holiday season, and a disappointing entry into the drone market”, Simona Jankowski, an analyst at Goldman Sachs wrote in a client note yesterday, cited by Investing.com.

Goldman turned out to be the second leading bank to downgrade GoPro, following Citigroup Inc. On March 3rd Citis Research division warned customers that GoPro would probably continue to be a “money loser” during the upcoming two years.

In 2016, GoPro unveiled a restructuring plan, aimed at reducing the companys full-year 2017 operating expenditures to $650 million. The plan envisages the closure of GoPros entertainment division, reductions in facilities, as well as a 15% reduction of the companys workforce (about 200 persons in full-time employment).

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the GoPro stock are presented as follows:

R1 – $8.21
R2 – $8.28
R3 (Range Resistance – Sell) – $8.35
R4 (Long Breakout) – $8.57
R5 (Breakout Target 1) – $8.82
R6 (Breakout Target 2) – $8.94

S1 – $8.07
S2 – $8.00
S3 (Range Support – Buy) – $7.93
S4 (Short Breakout) – $7.71
S5 (Breakout Target 1) – $7.46
S6 (Breakout Target 2) – $7.34

By using the traditional method of calculation, the weekly levels of importance for GoPro Inc (GPRO) are presented as follows:

Central Pivot Point – $9.12
R1 – $9.46
R2 – $10.09
R3 – $10.43
R4 – $10.78

S1 – $8.49
S2 – $8.15
S3 – $7.52
S4 – $6.90