Shares of GoPro Inc. (NASDAQ:GPRO) came to life after the company reported better than expected second quarter earnings. The stock rallied by more than 20% after the struggling action camera maker said it was expecting fewer losses in Q3. However, it awaits to be seen if the stock will continue to edge higher as the much hyped Karma Drone continues to receive negative reviews on Amazon.
Karma Drones Negative Reviews
Launched in November last year, the Karma Drone was expected to revitalize GoPro sentiments among investors. However, a wave of bad reviews could rake the chances of the company generating significant returns from one of its most important investment.
Raymond James analyst, Travis McCourt, does not believe the Karma Drone has what it takes to propel GoPro to sustainable and profitable growth. A point of concern to the analyst is that most people in Amazon are giving the drone a three out of five stars.
Some of the negative comments so far has been directed towards the battery which according to some users does not fit in charging ports. Some continue to complain against the stabilizer which they say is not working as it ought to.
“If there was an option for zero or negative stars I would have clicked that! DO NOT buy this drone. JUNK!”” said one of the reviewers on Amazon.
Amidst the lackluster reviews, some customers appear to have fallen in love with the Karma Drone which they say has a great system that is easy to use. GoPro will have to address the raised concerns about its flagship product if it is to build on the second quarter momentum. Net loss for the quarter dropped to $30.5 million from $91.8 million a year ago.
GoPro is currently working on expanding its footprint in the burgeoning virtual reality market with its Fusion camera and new forms of video editing capabilities on social media.
“We’re investing in more areas now. We’re making investments in the drone market, and we’re having success there, and we’re making significantly more investments in software [….]. While we are spending more than in our pre-IPO years, we’re also getting a lot more done for the customer,” said CEO Nick Woodman.
GoPro stock was up by 19.25% in Friday’s trading session to end the week at $9.85 a share.