Part 2/5:
Analysts suggest that GoPro desperately needed this alliance. Despite the positive movement in share prices, the company is still facing significant challenges, particularly in achieving profitability. According to market estimates, GoPro is not projected to see earnings per share until at least 2018. This projection cast a long shadow over the company's current market valuation of approximately $1.4 billion—a substantial achievement for a company that has only been around for 12 years. However, it is important to note that this valuation is a drastic decline from its peak, as GoPro's stock was valued at eight times higher just a few years ago, and it has seen a staggering drop of nearly 90%.