GoPro's stock fell 8.3 percent Monday after a Pacific Crest analyst said the firm's long-term growth potential was questionable because of oversupply issues.
"Checks in the U.S. indicate that GoPro days of inventory are again nearing all-time highs," with sell-through down some 40 percent domestically in the past year, the analyst said in a Sunday note to clients.
Ambarella, which sells camera chips to GoPro, also fell, trading 5.9 percent lower.
GoPro did not immediately respond to CNBC's request for comment.
Nonetheless, Pacific Crest said there could be some near-term upside for GoPro, as the company's drone — named Karma and coming later this year — could double its total accessible market (TAM). "While the drone launch doubles the company's TAM and could support shares in the near term, we still see downside longer term due to action camera softness, with drones likely only gaining modest traction over time."
The analyst firm maintained its "sector weight" rating on the stock and indicated no price target.
GoPro shares have plummeted in the past year, falling more than 70 percent. Ambarella's stock is down almost 42 percent in the past 12 months.