What happened 

Shares of action-camera maker GoPro Inc (NASDAQ:GPRO) are down 16.6% so far in 2018, according to data from S&P Global Market Intelligence, as the company faces continued challenges turning its business around. 

So what 

Financial results continue to look terrible, with revenue falling 38.1% in the fourth quarter of 2017 and 7.4% in the first quarter of 2018. Revenue, gross margin, and net income have all been trending in the wrong direction for GoPro over the past three years

GPRO Revenue (TTM) Chart

GPRO Revenue (TTM) data by YCharts

What has to be concerning for investors is that GoPro's options for growing the business seem to be dwindling as well. The Karma Drone was pulled off the market a little over a year after it launched, and the media business is gone as well. That leaves GoPro's traditional action cameras and the nascent Fusion 360 camera for GoPro, which both have to be hits for the company to survive. 

GoPro's Hero camera.

GoPro's Hero camera. Image source: GoPro.

Now what 

Until GoPro can prove its ability to expand beyond the traditional point-and-shoot action camera or increase sales to a volume that will make it profitable, this is a company in dire straits. Cameras are proliferating on smartphones, and competitors are building action cameras with equivalent, if not better, features. GoPro will continue to be a volatile stock as operations show signs of improvement or pull back, depending on the quarter. But long-term GoPro has to prove it can be more than a one-trick pony, and that's where I have my doubts about this stock.