Although GoPro, Inc. (NASDAQ: GPRO) stock rallied by more than 78% over the past two days, Erik Woodring, a Wall Street analyst at Morgan Stanley (NYSE: MS) previously signaled potential further downside for this company over the next 12 months.
Woodring assigned a ‘Sell’ signal for GoPro stock on August 11, 2026. He further lowered the bank’s 12-month price target from $1.3 to 0.5, when GPRO traded at $0.62. With this stock trading at $1.28 on September 1, this bank anticipates a potential 60.94% capitulation over the next 12 months.
This analyst argued that GoPro’s poor quarterly financial performance showed that the company experienced heightened headwinds among other structural challenges. Furthermore, this company suffered quarterly declines in core hardware and retail camera sales.
Specifically, GoPro reported revenue of $105 million, in its second quarter 2026 results, down 31.3% year-over-year (YoY). As such, this company missed Wall Street’s expectations of $151.48 million.
Notably, GoPro’s hardware revenue fell to $76 million, representing a 39.9% crash YoY.
What fundamentals impacted GoPro stock today?
Over the past two days, GoPro stock has surged on constructive fundamentals. The core driver is a $285 million recapitalization merger with Starman Optical, a privately held U.S. photonics company that builds high-speed transceivers for Artificial Intelligence (AI) data centers.
This deal eliminates GoPro’s debt and pivots the company into AI-driven optical technologies. Specifically, around $92 million of GoPro’s debt was agreed to be covered in the merger deal.
Additionally, Mark Edward Fischbach, a popular YouTube creator alias Markiplier, disclosed 13.5 million GPRO shares, or an 8.5% stake in the firm. His endorsement, along with praise for the new Mission 1 Pro ILS camera, has sparked massive retail buying momentum.
GPRO price performance
Over the past six months, GPRO stock has surged by 67.76%, reaching a market capitalization of $161.7 million at the time of reporting.
With more traders turning bullish on this company, amid AI adoption, Morgan Stanley could review its 12-month price target.
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