GoPro Stock Falls On New Chinese Competition

Shares of GoPro Inc. fell 4% Monday after Chinese smartphone company Xiaomi launched a wearable action camera that offers many of the features of GoPro's Hero camera, but retails at half the cost. The Yi Action Camera will sell for $64, compared with $130 for the low-tier GoPro Hero, though it will initially only be available in China. Northland Capital Markets analyst Gus Richard said that while GoPro has a new competitor in Xiaomi, he believes its entrance validates GoPro's business model and shows there is room for growth. He maintained an outperform rating and $70 price target on GoPro's stock and said he would be an aggressive buyer of GoPro shares at current levels. GoPro's stock has lost 45% over the last 3 months.