GoPro Inc stock was flying on Thursday morning after the firm revealed its drone to the public for the first time. The long-awaited Unmanned Aerial Vehicle, or UAV, is set to be called the Karma, and it’s going to be released some time next year.
At time of writing GoPro stock was selling for $18.72, up 10.83 percent for the morning so far. The rise comes after months of losses in the firm’s shares as Wall Street downgraded its outlook on the firm in the wake of worries about demand for its cameras, and the total market for its products in the year ahead. The Karma drone was unveiled in a YouTube video on Thursday, and appeared to erase some of those worries.
GoPro unveils its Karma drone
“What if you could fly? That would be magic.” declares the launch video for the Karma drone. There’s a rising interest among he public for drones for recreational use, and GoPro hopes to leverage that, along with its brand, in order to attract a wider number of people to its range of products. Here’s a look at the video that launched the GoPro drone campaign.
GoPro says that the machine is coming in 2016, and those who would like to be first in line for all of the news and info on the device can sign up at this link. The firm will be giving away 100 Karma drones to selected people who sign up to that list. GoPro didn’t give a release date for the device, but some info about the Karma release can be gleaned from that contest.
On the terms and conditions page GoPro Inc says that there will be a draw for the device “On or before April 15, 2016.” The firm says that the winners will be notified “on or before December 31, 2016,” and that all prizes will be delivered on or before that date.
The firm’s conditions page added the the Estimated Retail Value of the prize will be $2,000.00. That gives an excellent guide on the pricing of the Karma drone, though it’s not clear what kind of other goodies could be included in the prize packet. The winners will receive a GoPro Karma drone along with a GoPro Karma drone prize packet.
GoPro stock is still subdues
Despite the surge on this morning’s market, GoPro Inc stock is still far below what it sold for just months ago. Shares in the action camera maker had lost more than 68 percent of their value in the six months through Wednesday’s close. This morning’s rise brings the value of shares above $18, but GoPro stock began the year selling for more than $60.
On Thursday FBR Capital released a note speculating that Apple Inc. might be interested in buying GoPro. Dan Ives, who authored the report, says that Apple is lagging behind in areas, like drones and VR, in which GoPro has an advantage.
News like that might be unfounded, but GoPro Inc stock often moves based on momentum, and shares with a lot of growth priced in tend to move on acquisition rumors, among other types of speculative market information.
For now, however, those holding GoPro stock will be hoping that the Karma drone can serve to reinvigorate the brand and bring massive sales growth back to reports about the future of the firm.