Shares of GoPro were up 12.7% as of 12:30 p.m. Thursday after an analyst suggested the action camera specialist could be an acquisition target for Apple. GoPro also launched a new promo for its new quadcopter, named “Karma,” and announced Apple Watch integration for the GoPro App.
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Apart from the drone’s curious name (karma can be good or bad, after all) GoPro’s new video doesn’t technically reveal anything new, but rather features a voiceover added to previously released teaser footage shot from a prototype Karma unit. But considering GoPro still expects Karma to officially lift off in the first half of 2016, now’s as good a time as any to ramp up its hype machine for the new product.
The more likely driver of today’s optimism, however, was a positive note on Apple from FBR analyst Daniel Ives. Specifically, Ives reiteraed his “outperform” rating on Apple stock and offered a $175 price target, then followed to suggest the folks in Cupertino have come to a “critical juncture” where they should consider making a large acquisition such as GoPro.
According to Barrons, Ives elaborated, “We believe an acquisition of GoPro would make sense for Apple; action cameras are uniquely positioned at the intersection of Apple’s smartphone, wearables, and multimedia offerings. Additionally, GoPro’s new product cycles could open the door to areas where Apple’s competitors are investing heavily (e.g., drones, VR), and Cupertino has been playing catch-up.”