NEW YORK (TheStreet) -- Shares of GoPro(GPRO) - Get Report were surging 5.66% to $15.81 in early-afternoon trading on Monday as the action-camera maker unveiled a drone, a new line of cameras, and a cloud service earlier today at a press event near Lake Tahoe, CA.
Investors now have to consider whether GoPro can enter the drone market and take out more established players like drone maker DJI, CNBC's Josh Lipton said on "Halftime Report" on Monday afternoon.
While most analysts will say that DJI has "tremendous resources and great products," they also know that the drone market is expected to reach $1 billion by next year, he said. "You know [GoPro CEO Nick Woodman] wants a part of that," he added.
As for the new camera, investors have to consider "how much life is left in this category," Dougherty analyst Charlie Anderson told Lipton. The new camera's sales performance will give them that answer, he said.
Lastly, the new cloud service could be a boost for the company as it allows users to automatically upload their videos and access and edit their footage from any device for just $4.99 a month, Lipton noted.
"That's a big deal if Woodman has really figured out a way to make shooting and sharing that video much more seamless and easy and quick for users," Litpon said.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate GOPRO INC as a Sell with a ratings score of D. This is driven by some concerns, which the team believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks the team covers.
You can view the full analysis from the report here: GPRO