Everything was peachy for GoPro Inc (NASDAQ:GPRO) this morning, then Chinese drone maker SZ DJI Technology Co. came along and stomped out any semblance of bullishness in GPRO. Specifically, the case for GoPro’s Karma drone just weakened, as DJI’s new Mavic Pro drone released to rave reviews.
GPRO only revealed Karma last week, and since then GPRO stock rallied nearly 20%. GoPro is shaving off 5% of those gains today as the market adjusts to a world with yet another compact, foldable drone.
The Chinese company currently leads the potentially $4.2 billion drone market and doesn’t plan on giving GoPro any quarter.
DJI’s Mavic Pro is half the weight of its Phantom drone, and The Verge writer Ben Popper describes it as almost slim enough to fit in his back pocket. The Mavic Pro costs $999 and is aimed at consumers and professionals alike.
GPRO’s drone costs a more affordable $799, but consumers who can afford that could easily fork over another two Benjamins for the Mavic’s superior build. Or they could choose the $749 option if they’re cool forgoing the controller and flying it with their smartphone instead.
Speaking with Bloomberg, Skylogic Research founder Colin Snow claimed the Mavic Pro would “eclipse” Karma:
“DJI tends to jump ahead with their technology because they have so much money in R&D. They have access to all these engineers in Shenzhen. Their focus is to bring products to market quicker.”
GoPro’s Karma, Snow notes, may see some pull with consumers in GoPro’s ecosystem, but believes the Mavic Pro has absolutely superior technology. The market seems to agree.
Further, Karma doesn’t have the smart features of the Mavic Pro, such as collision avoidance and active tracking. The former does what the name suggests, while ActiveTrack works in conjunction with the controller and a smartphone to follow a person around, pivoting around the person while streaming it all in 1080p to Facebook Inc (NASDAQ:FB) Live.
From DJI CEO Frank Wang:
“DJI has spent a decade making it easier for anyone to fly, and by rethinking everything about how a drone looks, we have created an entirely new type of aerial platform for anyone to explore their creativity. Mavic Pro is a technological triumph filled with features that once again show how DJI leads the industry.”
Good luck out there, GPRO stock holders.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.