GoPro Inc. dropped after Citigroup Inc. cut its earnings forecast for the maker of wearable cameras, reigniting concerns that it may be a single-product company.
Shares of San Mateo, California-based GoPro fell 1.3 percent to $57.91 at the close in New York time, sliding for a third day, the longest losing streak since early May.
Fewer U.S. consumers plan to buy a GoPro device in the next year, Citigroup analysts led by Jeremy David wrote in a note Wednesday, citing a survey. The growing popularity of drones may eat into sales of GoPro’s flagship action camera, according to the analysts, who lowered their estimate for earnings per share this year to $1.55 from $1.66.
“The faster the growth of the drone category, the higher the risk of a slowdown in the action camera category,” said David, who reiterated a neutral recommendation on the stock.
Seeking to capture share of the drone market expected by Piper Jaffray & Co. to balloon by $3 billion by 2020, GoPro revealed last month that it is developing a video-capturing drone.
Shares of the company, which went public last June, have fallen 8.4 percent since the start of the year while the Nasdaq Composite Index has rallied 7.2 percent.