GoPro shares plunge after news of drone recall

GoPro Inc. shares tumbled more than 4 percent after the company said it’s recalling about 2,500 of its new Karma drones, dealing another blow to already dim prospects for the holiday season.

[...] last week, the company lowered its forecast for full-year sales and missed estimates for revenue in the third quarter, suggesting the device, and the latest iteration of its cube-shaped camera, won’t be the hits it was expecting.

GoPro said it’s working with the Consumer Product Safety Commission and the Federal Aviation Administration on the recall and plans to resume selling Karma drones as soon as it resolves the issues.

The drone recall comes on top of production issues with the Hero5 camera, which executives mentioned on a recent earnings call.

GoPro is up against intense competition in the drone business from manufacturing giant SZ DJI Technology and other upstarts flooding the market with cheaper models.