GoPro's public debut in 2014 came with lots of buzz, media attention and bullish investors piling into the stock.
This year, it's a much different story for the wearable camera maker.
Ahead of the earnings report Wednesday, the stock has suffered a brutal slide: It's down more than 50 percent in 2015, and down some 70 percent from its recent 52-week high of $87.50.
Financial analysts chalk up the free-fall to a couple factors: one, a disappointing debut for GoPro's new camera, the HERO4Session. Launched in July, GoPro billed the camera as its smallest, lightest and most convenient device.
But, in late September, GoPro then cut the price of the camera from $400 to $300. That decision, coupled with management's cautious commentary about the product's performance, led analysts and investors to conclude that sales are proving underwhelming.
A second reason for skepticism: guidance from Ambarella, a key chip supplier for GoPo. On a conference call with analysts in September, Ambarella said its expected revenue from its wearable camera business to be down in the third quarter, both sequentially and compared to the prior year.
After the market close Wednesday, GoPro is expected to report third-quarter earnings per share of 29 cents on revenue of $433 million.
Why, given this backdrop, do bulls insist that GoPro remains a buy?