GoPro (GPRO) Stock: Drones, Cameras, and Competition!

GoPro Inc (NASDAQ: GPRO)

GoPro is having a relatively strong day in the market today as we get closer and closer to a big event that’s coming. On September 19th the company will release its first drone. Investors are also expecting that we’ll hear more about the newest camera coming down the line. However, competition is getting increasingly competitive, and some are questioning whether or not the company can survive the onslaught. Today, we’ll talk about the new drone, the possibility of a new camera, why investors are so concerned, and what I’m expecting to see from GPRO moving forward.

GPRO To Launch It’s Drone Next Week

A week from today, GoPro is going to have a very exciting day. That’s because on September 19th, the company will release the Karma, the newest product in the company’s line. The Karma is a drone that is designed to take professional quality areal videos and pictures. The light weight, versatile drone is expected by many to take off like a rocket in the market. However, others, including myself, have some concerns. We’ll talk about those concerns later.

Is A New Camera Coming Too?

There have been several rumors circling the web that the Karma drone isn’t the only product that we’re going to see from GPRO on September 19th. In fact, many are expecting that the company will unveil it’s newest camera, the Hero 5. However, once again, there are several concerns surrounding this launch as well.

What Are Investors So Concerned About?

The concerns surrounding GPRO are definitely understandable. Ultimately, there are competition concerns surrounding both of the company’s products that have yet to be released…

  • Karma – First and foremost, the Karma drone is likely to be an awesome product. However, knowing the price of GoPro’s cameras, and the average cost of high end drones, I’m expecting that the Karma option will be expensive when compared to others in the industry. Not to mention, DJI already has a pretty strong grip on the professional areal videography drone industry. So, in order for the Karma to become a key player in this industry, it’s going to have to be able to compete with DJI’s comparably low prices while doing something that offers a better quality experience. This is going to be a hard thing to do.
  • Hero 5 – GPRO got into drones because of the competition that was in the camera industry. Unfortunately, the company just couldn’t seem to gain enough traction. Nonetheless, they’re taking another stab at it. Investors are expecting the release of the Hero 5 to come down the line on the 19th as well. Unfortunately, much of what the Hero 5 offers has already been leaked, and competitor, Garmin already released an offer that seems to be a copycat and will likely take a big chunk of the market. On top of that, Apple’s new iPhone camera and other competition are leading to concerns.

What I’m Expecting To See Moving Forward

While I hate to be the bearer of bad news, the truth is that the future isn’t looking too bright for GoPro. At the end of the day, the company is struggling to find the right audience and get sales in order. Unfortunately, I don’t think that the Hero 5 nor the Karma are going to be competitive enough to take a lion’s share of their respective industries. As a result, I’m not expecting to see much by way of positive news out of GPRO ahead.

What Do You Think?

Where do you think GPRO is headed moving forward and why? Join the discussion in the comments below!

Recommended Investing Resources
TradeSpoonTradeSpoon Details
Learn how to trade smarter risk free! Find winning trades in minutes!
Motif Investing Motif Investing Details
Get $150 free today and discover the future of investing.
Betterment Betterment Details
Simplify your investing and get great returns.