These 5 Stocks Are Grabbing the Morning Headlines

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GoPro Inc (NASDAQ:GPRO) shares are 18% lower this morning after the company warned that its fourth-quarter results will be worse-than-expected. Because of soft demand, GoPro now anticipates sales of $435 million for the quarter, substantially below its previous guidance of $500 million-to-$550 million and analyst expectations of $511.9 million. The action camera company also expects its fourth-quarter non-GAAP margins to be between 44.5% and 45.5% versus the company’s previous guidance of 45.5%-to-46.5%. Management plans to cut 7% of GoPro’s workforce to firm up the company’s bottom-line. Shares of Ambarella Inc (NASDAQ:AMBA) are also off by 10% this morning, owing to the chip maker’s close partnership with GoPro. The number of hedge funds long GoPro Inc (NASDAQ:GPRO) increased by four to 25 during the third quarter.

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In other news, Yelp Inc (NYSE:YELP) is 9% lower in morning trading after analysts at B. Riley downgraded the stock to ‘Sell’ from ‘Neutral’. Although local is a big market segment, Yelp Inc (NYSE:YELP) has failed to monetize the opportunity and it’s unclear whether the company can outlast Alphabet Inc (NASDAQ:GOOG). The U.S. government hasn’t pressed serious anti-trust charges against Alphabet and it’s unclear whether it ever will. Yelp needs to innovate its way into profits and so far its innovation isn’t enough to please shareholders.

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Disclosure: None

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