GoPro Inc Trying High Wire Balancing Act in 2017

GoPro Inc (NASDAQ: GPRO) is attempting to pull off a difficult balance: it needs to make just little enough inventory to make sure there's not an excess of product in the market this holiday season without losing sales by being back-ordered. In short, the company is trying to create a product shortage this holiday season.

Inventory is the #1 challenge for GoPro, and it has to get its inventory strategy right or risk continued losses. In 2015 GoPro was awash with inventory, and in 2016 it didn't make enough to meet demand. Not surprisingly, it lost money both years. As we approach the 2017 holiday season and the release of the Hero 6 camera, investors should be watching inventory levels closely. Here's what to watch for.

Image source: GoPro.

Source: Fool.com