Shares of GoPro (GPRO) tumbled more than 6% in after-hours action as they failed to allay fears the stock's hot start has left the newly-public company overvalued.
GoPro logged a healthy 38% leap in revenue to $244.6 million as consumers continue to gobble up the company's cameras, including the Hero3+ device.
However, GoPro's quarterly loss nearly quadrupled to $19.8 million. On an adjusted-basis, the company said it earned 8 cents per share. That exceeds estimates from Wall Street analysts by a penny.
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GoPro highlighted efforts to boost sales by promoting extreme videos of skydiving, shark diving and snowboarding. The company said its YouTube views have soared 200% year-over-year.
But it's clear that GoPro failed to live up to the hype generated from its blockbuster start on Wall Street.
After pricing its IPO at $24, GoPro spiked to nearly $50 in early July before taking a breather.
The march higher has left GoPro with a lofty valuation, especially considering it's not currently profitable.