Struggling GoPro Is Laying Off 200 Employees, Plus More Details On Netflix’s Offline Viewing

by 1 year ago


“There will come a moment…to start envisaging together with government a phase-out period for cigarettes, and I hope this time will come soon” — Andre Calantzopoulos, CEO of Philip Morris, one of the world’s largest tobacco companies. Yes, you read that right.

Market Snapshot

  • Propelled by early energy sector gains, U.S. markets ended mixed Wednesday, but the Dow still locked in its best month (+5.4%) since March
  • Shares of controversial pharma giant Valeant Pharmaceuticals tanked 8% after negotiations with Takeda broke down. The dead $10 billion deal involved selling off Valeant’s leading stomach-drug division to the Japanese pharma company—that can’t feel good

If At First You Don’t Succeed

…Try again…and again…and again. After years of failing to agree on production cuts, the Organization of Petroleum Exporting Countries (OPEC) finally reached success yesterday. The oil cartel agreed to cut production by 1.2 million barrels a day, which will reduce global production by 1%. It may not sound like much, but it’s a big deal. Non-OPEC producers aren’t putting their necks out there nearly as much, apparently only cutting production by a total of 600,000 barrels a day. Oil prices surged over 9% on the news, as many expect that yesterday’s deal will help work off the oversupply and balance prices in the future. Oil market-watcher Daniel Yergin said it best: “OPEC is back in business.

No WiFi?

…We good. Streaming giant Netflix (-0.43%) just went for it: offline viewing. You can now download movies and shows straight to your phone or tablet…at no extra cost. Looks like those subway rides just got a lot more (or less) productive. This move puts Netflix in another category, with giants like iTunes and Amazon Prime Video, that offers video rentals and purchases for download. And let’s not forget about Netflix’s global reach: the ability to download content in areas of the world with spotty internet speeds adds value to Netflix’s services as it continues to expand internationally.

GoPro: Do Not Pass Go

…Do not collect $200. It’s been a year to forget for GoPro (+1.53%): its stock price has been cut in half amidst deep losses and a crippling recall of its highly-anticipated Karma drone. After such a demoralizing year, what’s next? Yesterday, the action camera company announced it would be laying off 200 employees (15% of its workforce)…and GoPro’s president will be stepping down at the end of the year…and the company will be shutting down its entertainment division. Yikes. The moves are an effort to downsize and could get GoPro back to profitability, but it also means giving up on the dream of becoming an all-encompassing media company. Some dreams just don’t come true.

What’s In the Box?

…Profits? Maybe someday. Box (+1.5% after hours), the online storage company (not to be confused with Dropbox), reported solid quarterly earnings yesterday, inching closer and closer to the coveted milestone of positive free cash flow (read: not losing money). Sounds like a good goal to us. Box’s revenue rose 31% to $103 million, with management attributing the success to increased adoption of new products. Almost there, Box.

RBC Loses its Mojo

…Yesterday was a cold day in Canada indeed after its largest bank missed Street expectations, driven by poor trading revenues. The Royal Bank of Canada (-3.35%) also scaled back its return on equity target (an important metric for banks) due to interest rate and regulation concerns. But fret not: CEO Dave McKay says the future’s looking bright for RBC as its steadier businesses continue to grow.

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Economic Calendar

Secure the Bag Alert

As you await the delivery of your Cyber Monday purchases, keep one thing in mind: a package isn’t safe until it’s resting in your arms, in the relative security of your home. In other words, get it off your front porch ASAP—holiday “porch pirates” are a real thing. Don’t worry though, there are ways to prevent this thievery. Here’s what you need to know:

  • First, the stats: 23 million packages were stolen last year before the rightful owners could open them, according to Ouch.
  • 49% of people say they try to fend off stoop stealers by adjusting their schedules in order to be home when a package arrives, making for a smooth handoff with the UPS guy.
  • 36% of millennials say they have recovered a stolen package by sharing video evidence and working with the police—keep it up, young folks.
  • One company, Ring, offers a doorbell cam to catch thieves. It’s niche, but in high demand: Ring has seen sales rise so much that it’s increased its workforce from 300 to 700 employees this year.

Interview Question of the Day

1 + 4 = 5

2 + 5 = 12

3 + 6 = 21

8 + 11 = ?


Business Person of the Day

Jim Delligatti, creator of the Big Mac, has passed away at 98. Delligatti developed the idea for the iconic burger in 1965, believing the burgers and fries menu needed something bigger and jazzier. The original price was 45 cents—a far cry from today’s $5 burger—but that ain’t stopping us. Plus, we’ve seen worse.

Food for Thought

According to the Government Accountability Office, the federal government is on track to forgive at least $108 billion in student debt in the coming years. Enrollment in such plans has more than tripled over the past three years, amounting to 5.3 million borrowers who owe roughly $355 billion. There are still about eight million Americans in default on their student loans.

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