Tatler Cox Reports GoPro Launches $799 Drone Product

Wearable camera firm launches new drone product into saturated market.
Wearable action camera technology company, GoPro has launched a drone product which it hopes will help rescue its fortunes after an extended run of earnings reports in which it posted falling revenues.

When it goes on sale later this year, the product, dubbed "Karma" will be priced at $799 for the basic drone and $999 with a Hero 4 camera, the company's flagship camera. The company's share price has surged by 15% in the last 7 days as hyperbole over the new product lifts hopes that it can recover from what has been a 20% slump in 2016 and an 80% plunge from its all-time high.

Sales of its Hero 4 camera have been on the wane amid competition from other manufacturers producing capable products at lower prices and, consequently, the company is losing money.

"Initial reviews of the quadcopter drone have been encouraging but the fact remains that it's entering a highly saturated, highly-competitive market," said Neil Bell, senior technology researcher at Tatler Cox.

"There might be more juice to come for the share price if the company reveals its new Hero 5 action camera but Tatler Cox doesn't see much chance of it recovering past glories," added Bell.

GoPro went public in June 2014 to considerable fanfare after which its share price quickly surged to an all-time high of just under $93.85 in October 2014 from its IPO price of $24. The stock is currently trading at just $14.26, nearly $10 under its IPO price but Tatler Cox believes there is a chance that at these levels, GoPro could very well attract takeover interest of larger companies like Google or Amazon and consequently, suggests that those who haven't already sold the stock have little to lose by hanging on to their holdings.