NEW YORK (TheStreet) -- Shares of GoPro (GPRO) were plummeting 8.47% to $10.93 in Friday morning trading, after the wearable camera company reported disastrous third quarter earnings after the market closed Thursday.

GoPro recorded a loss of 60 cents per share on $240.56 million in revenue, wider than analyst expectations for a loss of 36 cents on $314.06 million in revenue.

The company may be hitting a wall in terms of sales of its signature product, as Recode managing editor Edmund Lee explained on CNBC Friday.

"We've all got these phones now, right? They work really well for video and for camera," Lee said on "Squawk Alley." "Do I really need to spend $100, $200 on another thing? That's not new, but the expectations game is something that a lot of tech companies, a lot of Silicon Valley companies, frankly have not done a good job of signaling to the market. I think that's a big factor that's weighing on this."

GoPro is diversifying its product offerings with drones, a move that Lee is cautiously optimistic about.

"It's definitely an opportunity," Lee said. "It's also still a nascent thing. It started out as a toy. Is it a serious product? How do I use it as an adult?"

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate GOPRO INC as a Sell with a ratings score of D. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: GPRO

GPRO Chart GPRO data by YCharts

More from Markets

Watch: Here's What Wall Street Is Tracking Monday as Trump Sends Stocks Lower

Watch: Here's What Wall Street Is Tracking Monday as Trump Sends Stocks Lower

Dow Falls Sharply, Nasdaq Sinks as Wall Street Weighs Trump's New Trade Threats

Dow Falls Sharply, Nasdaq Sinks as Wall Street Weighs Trump's New Trade Threats

This Will Be the Ultimate Buy (or Sell) Signal for Stocks

This Will Be the Ultimate Buy (or Sell) Signal for Stocks

Boeing Slides as China Premier Li Says Willing to Continue Talks With Airbus

Boeing Slides as China Premier Li Says Willing to Continue Talks With Airbus

Jim Cramer: Reports of Attempted Trade Truce With China Are False

Jim Cramer: Reports of Attempted Trade Truce With China Are False