GoPro (GPRO, Financial) has been a terribly run company, but it looks like the company’s fortunes may turn in the near future. GoPro’s new products, especially its drone, lived up to the pre-launch hype and can considerably boost the company’s revenue going forward.
Karma Is a Good Drone
GoPro launched its most awaited product—Karma Drone—earlier this week. GoPro’s Karma Drone comes with a Karma Kit that comprises the overall ecosystem of products. It includes Karma Grip, a handheld stick with controls for a camera and image stabilization technology. Moreover, it also includes a Karma Case, a backpack with a shoulder mount for Karma Grip.
The Karma Controller will allow users to simulate flight before launching it, and its compact design is very appealing in comparison to heavy controllers from drones by big players like Parrot (XPAR:PARRO, Financial), DJI, etc. Moreover, Karma is loaded with some amazing features, such as a circular flight pattern that places the camera on a center point.
On the flip side, Karma lacks some features that may be a setback for some users. It does not have automated flying features like a follow me tracking feature. Apart from this, it also does not comprise an obstacle avoidance feature.
However, GoPro’s management detailed that it doesn’t think these kind of features are necessary. The reason behind this could be that the company wanted to make Karma cost effective by eliminating these features.
All in all, Karma is a great drone and has the potential to appeal to the masses. But, it needs a more hands-on approach as compared to its competitors.
What Is GoPro Plus?
Formerly, GoPro launched GoPro Plus, a cloud-based storage solution available for just $4.99 per month. The facility to edit, store and share videos will make it much easier to slender on the company’s monetization prospects with stored content.
Moreover, the company has publicized new editing hardware as well as software accessories, but it is GoPro Plus that abides a lot of attention.
GoPro has lot of potential to offer recurring monthly revenue, aiding offset the swings of hardware demand that has seared stockholders in the past.
Conclusion
After months of disappointment, it looks like GoPro has delivered a great product in the form of Karma, which should help the company gain traction in the booming drone market. Given that GoPro has been a beaten-down stock, I think investors can capitalize on the recent launches by buying the stock.
Disclosure: No Position.
Start a free 7-day trial of Premium Membership to GuruFocus.
