GPRO's AI Pivot Sends Stock Soaring 183% — But This Expert Warns Fundamentals Don't Support It - GoPro (N

GoPro (NASDAQ: GPRO) agreed to merge with privately-held Starman Optical. GoPro shareholders will receive $1.14 per share, and the company will remain publicly listed. The merger aims to expand GoPro's optical and imaging capabilities into AI, defense, and aerospace markets, with a transaction expected to close by year-end 2026.

GoPro's stock (GPRO) surged 200% after announcing a $285M merger with Starman Optical and YouTube creator Markiplier revealing an 8.5% stake. The deal values GoPro at $1.14 per share, with Starman taking 90% of the combined company. Markiplier cited undervaluation as his investment motive. GoPro's stock was trading at $1.75, up 26% on Friday.

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GoPro (GPRO) surged 34% to $1.86 on its merger with Starman Optical, extending a 120% monthly gain. Coherent (COHR) rose 7% to $282.45, and Lumentum (LITE) gained 3% to $876.92. GoPro's deal includes $1.14 per share in cash and a 10% stake in the combined company. The SPY ETF slid 0.4%, and QQQ was flat.

Mark Fischbach, a YouTuber known as Markiplier, became GoPro's largest individual shareholder with an 8.5% stake. Bloomberg reported his investment, and GoPro's stock surged after an acquisition by Starman Optical was announced. Fischbach denied allegations of securities fraud, stating his investment was due to GoPro's undervaluation. GoPro shares rose 173% from Friday to Tuesday, attracting meme stock traders. Fischbach plans to vote against the merger if GoPro shifts away from consumer cameras

GoPro (GPRO) will merge with Starman Optical, expanding into AI data centers. The deal, expected to close by 2026, values the transaction at $285M. GoPro will add Starman's optical transceivers to its portfolio, targeting AI infrastructure. GoPro will remain public and debt-free post-merger, according to the companies.