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?"
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