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Shortly after GoPro’s third quarter earnings report, the shares of the American tech giant is reaching new lows of almost 20%. The latest third quarter earnings report of the company showed that they have missed their forecasted revenue by $75 million down by 23%.

Early trading following the release of the earnings report already posted a 22% decline opening at $12.55 from the recent trading session’s close of $12.84 leading the company’s market capitalization to drop to almost $972 million from their prior market value of $1.23 billion.

This was a letdown for the investors as the company recently released a new version of their flagship products which is the GoPro Hero5, the Hero5 Session, and the much-awaited product from their company which is a drone camera GoPro called the Karma drone.

The updates to their products raised investor expectations exponentially with their shares extending gains up to $17 in late trading following the initial announcement of the GoPro Hero5 and Karma drone. A 9% rally in the stocks of the tech company was also recorded last August 15. The said rally was then forecasted for the past three months surrounding the rumors that the company is set to release a new series and version of their flagship products and the rising speculation that the company will finally be releasing their first drone camera.

Fitbit Decline Drives GoPro Down Further

The company behind the wearable activity tracking devices and wireless enabled technology also experienced a huge drop in their shares of more than 30% missing a huge earnings expectations report as it stated a disappointing forecast for the upcoming holidays. This is a huge driver for tech companies especially there is an expectation that the holidays will bring more sales and revenue for tech companies. Fitbit’s decline mirrors a less demand for other tech and similar products.

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7% Decline in GoPro Shares

From GoPro’s shares trading at around a $17 price level, the shares have now dropped to around $11 with the most recent trading session opening at $12.55 before closing at $11.94 recording a 7% drop in one day and an overall decline of almost 25% after the earnings report. As of its official IPO back in 2014, the tech company behind the sports and action camera has declined by 68%. GoPro shares for the past year have also declined by not less than 50%.

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The RSI indicator is now pointed down just exactly above the level 30 decline indicating an upcoming oversell in the shares of the company. The company is posting a loss of 60 cents per share while they are placing a strong foot in earning around ten to twenty cents per share for the following quarter which will be the holiday season and an upcoming $625 million in revenue by 2017 which is still lower than investor and analyst expectation of $675.8 million in revenue.

According to a statement by GoPro, they are still facing a strong demand especially with their new products and are expecting a huge return on their profits by the start of 2017.

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