GoPro Stock Soars Amid Merger, But Analyst Still Sees Downside

GoPro's stock price has seen significant volatility over the past two days, surging by more than 78% after a major recapitalization merger with Starman Optical. However, despite this recent upswing, Morgan Stanley analyst Erik Woodring still predicts a potential 60.94% decline in the company's stock value over the next 12 months.

Woodring had previously signaled potential further downside for GoPro, assigning a 'Sell' signal on August 11, 2026. He lowered his bank's 12-month price target from $1.3 to $0.5 when GPRO traded at $0.62, citing the company's poor quarterly financial performance and structural challenges.

GoPro reported revenue of $105 million in its second quarter 2026 results, down 31.3% year-over-year (YoY), missing Wall Street's expectations of $151.48 million. The company's hardware revenue fell to $76 million, a 39.9% crash YoY.

The recent merger with Starman Optical eliminates GoPro's debt and pivots the company into AI-driven optical technologies. Additionally, popular YouTube creator Markiplier disclosed 13.5 million GPRO shares, or an 8.5% stake in the firm, sparking massive retail buying momentum.