This Could Be a Game Changer for GoPro Stock
GoPro Inc (NASDAQ:GPRO) is aiming really high to get your attention, and a share of your wallet. And it might just be able to achieve that if GPRO impresses the investors and analysts at its live event on Monday. GoPro stock is likely to get a booster shot if the company gets just this one thing right.
GoPro Inc, the action camera company, plans to unveil its much-anticipated new product today: the “Karma” drone. The Karma teaser trailers released by GoPro have been generating lots of buzz already, and it remains to be seen if the substance meets the hype. GoPro is also likely to launch the new “Hero 5” flagship camera at this event. (Source: “GoPro: Karma Is Close,” You Tube, September 8, 2016.)
Bank of America Merrill Lynch is confident of GoPro’s ability to profit from the growing drone market, and has initiated coverage of GoPro stock on Friday with a “buy” rating and a $19.00 price target. (Source: “Buy GoPro on growing drone market: Bank of America,” CNBC, September 16, 2016.) This further boosted GPRO stock as it gained nearly six percent on Friday, thus GoPro stock has registered gains of about 16% in the last week.
Sales figures for GoPro Inc have been declining and the company faces stiff competitors from the likes of DJI, Parrot SA (EPA:PARRO), Eastman Kodak Company (OTCMKTS:EKDKQ), Ricoh, and Samsung.
Nevertheless, GPRO stock is set to move higher if it exceeds the expectations around its Karma drone and springs up positive surprises related to its Hero 5 wearable cameras. The superior technology and stronger brand of GPRO would result in an uptick in sales.
From what can be gauged from the Karma teaser, the drone appears to be small and lightweight in contrast to the likes of the DJI “Phantom 3” and it can be maneuvered easily, even in tight corners. If GoPro could deliver on its promise of superior technology combined with a lightweight product, it would provide a shot in the arm for GPRO stock.
Hence, it remains to be seen whether GoPro meets these expectations at its media event today. All eyes would be on what superior features the company would introduce in the GoPro Karma drone, and at what price. The markets would also be expecting new features in GPRO’s Hero 5 flagship devices. These new product launches could help the company beef up its sales and provide a boost to GoPro stock.