What: Shares of GoPro (GPRO 2.62%) fell 10.6% Tuesday on no company-specific news.
So what: It is worth noting, however, that GoPro wasn't alone in its painful plunge; key GoPro supplier Ambarella (AMBA 7.35%) also closed down more than 8% Tuesday on no materials news. That said, Ambarella has also fallen more than 17% over the past week, after the video processing chip company blamed high inventory levels for customers in the wearable sports camera space -- which GoPro dominates -- for its disappointing fourth-quarter results and light forward guidance. What's more, the broader market certainly didn't help, as the Nasdaq Composite Index turned negative late in the day before closing down 1.3%.
Now what: It's no mystery GoPro isn't exactly resting in the market's good graces after its painful holiday-quarter results last month. And until GoPro can prove it has what it takes to return the company to sustained top- and bottom-line growth -- which could come through any combination of its new software initiatives, impending new product category launches, or a long awaited refresh of its recently narrowed capture device lineup -- it seems these kinds of no-news swings (both down and up) are par for the course. In the meantime, investors would be wise to focus first on GoPro's actual business.