GoPro shares gain the most in 11 months on Thursday, company to cut 270 jobs in an attempt to return to profit

On March 15th NASDAQ-listed camera maker GoPro said it intended to reduce its workforce by 270 in order to cut operating expenditures and return to profit. The positions affected are full-time jobs and openings.

GoPro shares closed higher for a second straight trading session on Thursday, while also marking their largest daily surge since April 13th 2016. The stock went up 15.78% ($1.16) to $8.51, after touching an intraday high at $8.64, or a price level not seen since March 6th ($8.72). In the week ended on March 12th the shares of the tech company lost 9.84% of their market value compared to a week ago, which marked a second consecutive period of decline and also the worst performance since the week ended on November 6th 2016. However, the stock has pared its slump to 9.47% 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%.

This has been the second time in the past three months, when the tech company announced layoffs.

“Today we are updating revenue guidance for the first quarter of 2017”, Nicholas Woodman, GoPros Chief Executive said in a statement, cited by Business Insider. “We now expect to deliver revenue in the upper end of our guidance range of between $190 million and $210 million.”

The camera maker also said that it would incur restructuring charges of up to $10 million, mostly linked with severance costs.

In 2016, GoPro unveiled a restructuring plan, aimed at reducing the company’s full-year 2017 operating expenditures to $650 million. The plan envisaged the closure of GoPro’s entertainment division, reductions in facilities, as well as a 15% reduction of the company’s workforce (about 200 persons in full-time employment). As of the end of December, 1 552 people were employed with the company, according to its website.

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 – $8.56
R2 – $8.62
R3 (Range Resistance – Sell) – $8.67
R4 (Long Breakout) – $8.83
R5 (Breakout Target 1) – $9.02
R6 (Breakout Target 2) – $9.13

S1 – $8.46
S2 – $8.40
S3 (Range Support – Buy) – $8.35
S4 (Short Breakout) – $8.19
S5 (Breakout Target 1) – $8.00
S6 (Breakout Target 2) – $7.89

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

Central Pivot Point – $8.20
R1 – $8.49
R2 – $9.01
R3 – $9.30
R4 – $9.59

S1 – $7.68
S2 – $7.39
S3 – $6.87
S4 – $6.35