GoPro Stocks Down 9% After ‘Karma’ Announcement, Press Unimpressed

GoPro’s stock prices are down 9 percent after announcing the existence of its first quad copter offering. Upon introducing the drone called the “Karma,” it was met with raucous applause from its employees. It also gained a surge in stock prices early in the day, only to turn sour by the time trading closed.

In the early hours of Monday morning, GoPro’s stocks jumped when CEO Nick Wood unveiled the company’s first ever drone. By the end of the day, it dropped by 2 percent, Fool reports. On Tuesday, the stocks fell a further 7 percent, removing the 9 percent increase that the company gained immediately after the announcement.

Several factors have been put forward as to why this happened including the voracity of short-term investors, missing features, and the pricing. With GoPro teasing the public and investors about what was supposed to be an impressive unveiling for weeks, it seemed to have attracted investors who were only looking to make a quick buck.

Then there’s the matter of essential features that are absent from the “Karma.” Its portability, low price, and simplicity might make it an appealing product to some. However, it doesn’t sport an obstacle avoidance system or a subject tracking feature; both of which are present in most high-end UAVs in the market.

Finally, there’s the price of not only the “Karma” but also the two new GoPro cameras that were announced during the press conference; the “HERO5 Session” and the “HERO5 Black.” The “Session” is priced at $299, which is $100 more expensive than the previous version, while the “Black” costs $399, making it $100 cheaper than the old one.

The concerns of investors are two-fold with the prices of these two cameras. With the “Session,” the cost might be too high for customers looking for a cheaper GoPro camera. In the case of the “Black,” it might be too cheap to get good margins.

It seems many in the press are similarly not impressed with the “Karma” as well, with sites like Tech Crunch basically saying that the drone was just okay. It might be more versatile and cheaper, but without subject tracking and obstacle avoidance features, critics believe that it simply falls short of being an excellent product.