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GoPro shares dip amid release of rival Mavic drone

GoPro Karma drone
Josh Edelson | AFP | Getty Images
GoPro Karma drone

GoPro shares sank on Tuesday after a dominant drone maker debuted a rival product that got favorable reviews.

Chinese company DJI on Tuesday released the Mavic Pro, a personal drone that can be folded to about the size of a water bottle. A review from The Wall Street Journal positions the device as a "nemesis" to GoPro's new drone, Karma.

DJI's drone has a stabilized 4K camera, smartphone controls and a visual navigation system, the company said. The new product starts at $999 with a controller at $749 without it, and will be available at Apple stores later this year.

GoPro announced on Sept. 19 its new drone, Karma, and touted a foldable design and camera stabilizer. But that product starts at $799.99 without a camera, and $1,099.99 with a new Hero5 camera.

Shares of GoPro's stock had climbed 13.1 percent between the announcement and Monday's close before falling on Tuesday. On Tuesday, they closed down 0.77 percent at $16.79 a share, and fell as low as $15.85 a share.

The increased competition comes as GoPro's shares have fallen nearly 50 percent over the past year, as devices like Apple's iPhone 7 and Snap's Spectacles have flooded the market with more camera choices. GoPro short interest is at $579 million, its year-to-date high, as more investors bet against the company, according to financial analytics firm S3 Partners.

Meanwhile, DJI already accounted for 70 percent of the consumer drone market last year, according to Recode.