GoPro Inc. (NASDAQ:GPRO) has gone from forgotten penny stock to one of the market’s hottest names in just days, soaring about 183% over the past five sessions as a new artificial intelligence angle, celebrity shareholder and meme-stock frenzy converge around the battered camera maker.
But not everyone is convinced the rally makes fundamental sense.
The ‘Markiplier’ Stake
Mark Fischbach, better known as YouTube star "Markiplier," became GoPro’s largest shareholder with an 8.5% stake worth roughly $20 million after the stock surged. Fischbach told Bloomberg he viewed the shares as undervalued and wanted the company to succeed.
"I saw the stock and where it was, I was like that seems undervalued. It’s just something I’ve been cooking in the background; I want the company to succeed," he said.
Fischbach added that his investment in GoPro is a part of his aim to make filmmaking more accessible. "One of the things I want to do is push my audience to the risky world of trying to make feature films and higher-end productions."
The Starman Optical Merger
Then came GoPro’s planned merger with Starman Optical, which the company says will expand its reach into AI data centers and defense technology. The combination added a new narrative to what had already become a retail-driven rally.
Last week, GoPro announced that as part of the agreement, its shareholders would receive $1.14 per share in cash, while its outstanding debt of $92 million would be repaid in full.
Upon close, GoPro will continue to operate as a publicly listed company, while Starman’s U.S.-made optical transceivers are expected to be added to its portfolio as it looks to tap into the rapidly growing market for optical transceivers used in AI infrastructure.
"The combination of GoPro’s world-class optical expertise and intellectual property with Starman’s advanced transceiver capabilities and U.S. manufacturing platform creates a unique opportunity. Together, we intend to bring production of these critical components back to the United States," said Starman Holding CEO Charles Tebele.
BYND Investor Flags GPRO Share Overhang
Dimitri Semenikhin, known for triggering a short squeeze in Beyond Meat Inc. (NASDAQ:BYND) last year, highlighted several factors that could affect GoPro’s share-price dynamics in a post on X. The company’s capital structure includes warrants covering roughly 11 million shares with an exercise price of $0.75, meaning the warrants could now be exercised with the stock trading above that level.
He also flagged a potential overhang from Class B share conversions and Woodman convertible securities, although he noted those are not an immediate factor.
At the same time, Semenikhin highlighted the absence of an active at-the-market (ATM) share-sale program, which he suggested could help explain the stock’s aggressive move higher.
"Fundamentals though don’t support any of this. This is a company with very little cash, heavy ongoing losses and high debt at the moment although sales still persist," he said.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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