The stock price of GoPro Inc [linkme to=”GPRO”] fell by over 4% in the morning trading session on Tuesday. That’s right, the stock slipped by over 4% in the matter of just 3 hours. Last Tuesday, the stock closed at $12.8. The stock then went up by almost 20% in the matter of a week to close at $15.51 on Monday. After the huge increment in the stock price over the past one week, the stock has finally come down and threatens to fall lower.
The California based company is is an American technology company founded in 2002 by Nick Woodman. It manufactures eponymous action cameras and develops its mobile apps and video editing software. Founded originally as Woodman Labs Inc, the company eventually descended into the connected sport genre; developing its line of action cameras, and eventually video editing software. It is currently developing a drone, code-named Karma, which is planned for release in October 2016.
GoPro released the Hero 5 Black and Hero 5 Session, both of which were updates to its flagship camera technology. The two cameras will become available October 5 and are priced at $399.99 and $299.99, respectively. Karma goes on sale October 23 and ranges in price from $799.99 to $1,099.99.
Both the Hero5 Black and Hero5 Session are a major upgrade over their predecessors, with voice control and native waterproofing chief among the standout features. The flagship Hero5 Black now comes with a 2-inch touch screen, GPS and a sensor that takes up to 12-megapixel images. Like the Hero4, the Hero5 shoots 4K at 30 frames per second. Although it left people wishing for it to handle 60 fps.
Additionally, the Hero5 Black and Hero5 Session come with electronic image stabilization, which should translate into smoother shots during your adventures. Going back to the voice control feature, there’s only going to be support for seven languages at launch, including English and Spanish.
Yesterday, Woodman (CEO GoPro) tried to show that his company had moved past all its difficulties. Walking on stage while whooping and carrying a backpack, he unveiled GoPro’s new updated cameras, including the Hero5 Black edition, which now has a built-in touch screen LCD, and the smaller, cube-like Hero5 Session. Both cameras, he said, are now waterproof without additional casing and feature voice control, which allows users to take photos or videos by simply talking to their devices. The voice-recognition feature can be used with seven different languages, and Woodman demonstrated the feature to the audience in Spanish.
Our analysts believe that the launch of the Karma drones would really boost the stock price of GoPro. Till then, it has shown great variance by fluctuation in big margins. Our analysts have given a “HOLD” rating to this stock and have advised not to buy it at this stage. They have advised the holders of this stock to only sell it once the new drone gets launched.