GoPro Shares Sizzle on YouTuber Markiplier Becoming Largest Shareholder. How to Play GPRO Stock Here.

Chances are, if you have watched a YouTube video, you have come across one where the creator is recording their experiences through a small, handheld camera. Usually, it is a GoPro (GPRO). And it is in the news now because prominent YouTuber and filmmaker Markiplier (also known as Mark Fischbach) has become the single largest shareholder of the company. Additionally, the company has now entered into a $285 million merger agreement with photonics company Starman Optical.

Aimed at expanding GoPro's reach in the AI and defense market, Starman CEO Charles Tebele said, “Advanced optics and imaging are essential to AI, national security, and the broader economy, yet much of the critical hardware supporting these technologies continues to be manufactured overseas. 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.”

Notably, GoPro will remain a publicly listed company, and its founder and CEO, Nicholas Woodman, will retain his position post the merger.

The twin developments sent GPRO stock soaring. Shares rocketed by more than 40% in yesterday's trading session and are up almost another 40% so far today, after a difficult year so far.

About GoPro

Founded in 2002 and commencing business in 2004, GoPro essentially created the modern action-camera category. Its cameras, accessories, Quik software, and subscription/cloud services allow users to capture, edit, store, and share photos and videos, particularly in sports, travel, and other difficult-to-film environments. Since the launch of its breakthrough HD Hero product in 2009, GoPro said it had surpassed 50 million cameras sold by 2024.

Yet, GPRO stock has been under pressure this year, and after spending most of the year in the red, it is now up just 2% on a year-to-date (YTD) basis. Its current market cap is at $227 million.

Can Starman Make GoPro Go Places?

At first glance, the merger makes sense. Starman's expertise lies in the development and domestic manufacturing of optical transceivers used in networking equipment and data centers. This, combined with GoPro’s consumer-facing brand, optical imaging intellectual property (spanning over 2,500 patents and 24 years of engineering), and global distribution, could create a diversified technology platform spanning consumer imaging, defense, robotics, aerospace, and AI infrastructure.

However, there is a reason why GoPro shares have been trading at penny-stock levels since their listing in 2014, and Starman has an arduous task of integrating the company effectively within itself.

Over the years, GoPro remained highly relevant among athletes, travelers, creators, and outdoor users, but most consumers did not need a new camera every year. Improvements in resolution, stabilization, durability, and battery life eventually became incremental rather than transformational. Meanwhile, smartphones absorbed much of the casual photography and video market. Dedicated action cameras retained advantages in mounting, ruggedness, and extreme environments, but that did not make them a mass-market necessity. 

Competition from DJI and Insta360 added another problem. Both expanded rapidly across action cameras, compact creator cameras, drones, and panoramic imaging, placing pressure on GoPro’s pricing and product release cadence.

GoPro attempted to escape this narrow category through drones, panoramic cameras, media, editing software, and other initiatives. Those efforts consumed capital without creating a second dependable profit engine. The Karma drone became the clearest example of ambition running ahead of execution, while later product diversification remained too small to reshape the financial profile.

Thus, the Starman deal could not have come at a better time. A key uptick from the deal (expected to close by the end of 2026) that would be immediately visible is that GoPro’s roughly $92 million of debt will be repaid at closing, leaving the combined business substantially free of debt.

Looking at the larger picture, the deal can bring complementary benefits for both companies. GoPro brings optical engineering, image processing, rugged hardware design, global distribution, cloud services, and a portfolio of more than 2,500 United States patents. Starman can use that engineering base to develop imaging and optical systems for robotics, defense, aerospace, and commercial markets.

Finally, GoPro can use Starman’s manufacturing platform to bring some strategic production closer to customers and potentially apply its camera expertise beyond consumer products.

A Herculean Task to Remedy the Finances

Starman may draw some solace from the potential synergistic benefits. Yet, it may also shudder to look at GoPro's finances, which are in dire straits.

The company is unprofitable and has seen its revenues decline at a CAGR of 7.51% over the past 10 years.

Furthermore, the most recent quarterly results lived up to this treacherous track record.

Revenues fell by 31% from the previous year to $105 million, as retail sales declined by 48% to $58 million. Subscription revenues offset the downturn to some extent, rising by 31% on a YoY basis to $47 million. In fact, subscription ARPU, or average revenue per user, rose by 9% in the same period.

However, camera units sold in the quarter stood at 291,000, which was down 38% from the previous year. Consequently, gross margins were corrected to 30.4% from 36% in the year-ago period.

Worryingly, as compared to the last year, the company's cash flow from operating activities turned negative this quarter. Net cash used in operating activities was $10.2 million in Q2 2026. This was an inflow of $8.8 million in the prior year. Overall, GoPro exited the quarter with a cash balance of $27.3 million, much lower than its short-term debt levels of $72.7 million.

Analyst Opinion on GPRO Stock

GPRO is not a stock that has wide coverage on the Street. Only two analysts cover it and have assigned a unanimous “Strong Sell” rating to it.