GoPro (GPRO) stock fell Tuesday after DJI, the leading maker of consumer drones, introduced a new flying camera that could provide stiff competition for GoPro's recently announced Karma drone.
GoPro shares tumbled as much as 6.3% intraday, but ended the session down 0.8%, to 16.79, on the stock market today.
Ambarella (AMBA), which makes image-processing chips for GoPro and other companies, saw its stock rise 3.5% to 68.64 on Tuesday. Ambarella chipsets are used in security cameras, dash cams, action cameras and drones.
IBD'S TAKE: GoPro stock has a middle-of-the-pack IBD Composite Rating of 57. It ranks No. 5 out of 11 companies in IBD's Consumer Products-Electronic industry group. To see which company leads the group, check out the IBD Stock Checkup.
Shenzhen, China-based DJI on Tuesday unveiled its Mavic Pro quadcopter, which beats GoPro's Karma on portability and price.
While Karma can fit in a backpack, Mavic Pro can fit in a purse. Like Karma, the propeller arms fold for easy storage and portability. The folded Mavic Pro is about the size of a water bottle, DJI says.
DJI's Mavic Pro is equipped with a stabilized 4K camera and visual navigation system and boasts a 4.3-mile range and 27-minute flight time. Karma has a run time of about 18 minutes. Both Karma and Mavic Pro allow users to swap out spare batteries.
The Mavic Pro can be operated from a smartphone at shorter ranges and with a long-range remote controller for greater distances, DJI said.
Unlike Karma, Mavic Pro has built-in obstacle avoidance and intelligent flight technology such as "follow-me" mode.
Mavic Pro sells for $999 with the remote controller included. It will begin shipping on Oct. 15.
Meanwhile, GoPro's Karma goes on sale on Oct. 23. The wireless controller is standard with Karma, but not the camera. A bundle with the new Hero 5 Black camera will cost $1,100. GoPro also plans to sell a discounted bundle with the Hero 5 Session for $1,000 next spring.
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