GoPro, Inc. (NASDAQ: GPRO) stock rallied more than 78% over the past two days, though Wall Street remains skeptical of the company's prospects. Morgan Stanley analyst Erik Woodring assigned a 'Sell' rating to the stock on August 11, 2026, and lowered the bank's 12-month price target to $0.50 from $1.30, according to reporting at the time the stock traded at $0.62.
With GoPro trading at $1.28 on September 1, Morgan Stanley's price target implies a potential 60.94% decline over the next 12 months. Woodring cited poor quarterly financial performance and structural headwinds as reasons for the bearish outlook.
Financial Performance Pressures
GoPro reported second quarter 2026 revenue of $105 million, down 31.3% year-over-year and missing Wall Street expectations of $151.48 million. Hardware revenue fell to $76 million, representing a 39.9% decline year-over-year, signaling weakness in the company's core camera business.
Recapitalization Merger Drives Recent Gains
The recent stock surge stems from a $285 million recapitalization merger with Starman Optical, a privately held U.S. photonics company that produces high-speed transceivers for artificial intelligence data centers. The deal eliminates approximately $92 million of GoPro's debt and repositions the company toward AI-driven optical technologies.
Additionally, popular YouTube creator Mark Edward Fischbach (known as Markiplier) disclosed a stake of 13.5 million GPRO shares, representing 8.5% ownership. His endorsement, along with positive reception for the new Mission 1 Pro ILS camera, reportedly sparked retail buying momentum.
Stock Performance
Over the past six months, GPRO stock has gained 67.76%, reaching a market capitalization of $161.7 million at the time of reporting. Morgan Stanley may reassess its 12-month price target as market sentiment shifts.
