GPRO Stock Gains After-Hours On Possible Sale Or Merger: Retail Has Eyes On Meta And Garmin

• GoPro and its Board have not set a timetable for the evaluation, nor have they made any decisions on potential transactions.
• Citing macroeconomic headwinds in consumer electronics and its newly launched strategic review, GoPro further withdrew its previously issued full-year outlook.
• GoPro reported first-quarter revenue of $99 million, a 26% decline from the year-ago period as camera sell-through fell by about 29%.

GoPro (GPRO) shares surged 10% in after-hours trading on Monday after the company announced a formal review of strategic alternatives despite disappointing first-quarter results and suspended full-year guidance.

GoPro’s Board of Directors has authorized the company to launch a strategic review process and to engage a financial advisor to assist. The Board will evaluate a range of strategic alternatives that could include a sale of the company or a merger.

The review follows GoPro’s recent engagement of Oliver Wyman to support its expansion into the defense and aerospace markets. Since announcing that initiative on April 13, the company has received several unsolicited inbound strategic inquiries.

GoPro and its Board have not set a timetable for the evaluation, nor have they made any decisions on potential transactions. The company said there can be no assurances as to the outcome or timing of the review.

Citing macroeconomic headwinds in consumer electronics and its newly launched strategic review, GoPro further withdrew its previously issued full-year outlook and said it will not provide forward-looking guidance.

GPRO's Weak Q1 Results 

GoPro reported first-quarter revenue of $99 million, a 26% decline from the year-ago period as camera sell-through fell by about 29%.

Adjusted net loss for the quarter came in at $0.35 per share, wider than the loss of $0.12 reported in the corresponding quarter of last year, and including a $24.5 million charge related to certain component purchase commitments and $4.5 million sale of slow-moving inventory, the firm said.

GoPro has faced significant hardships, including sustained financial losses, and intense competition from rivals like DJI and Insta360, causing its market share to drop. Last month, the firm said that it will layoff 23% of its global headcount, or about 145 employees, in a bid to reduce operating costs.

Retail Sentiment About GPRO

On Stocktwits, retail sentiment around GPRO jumped from bearish to bullish territory over the past 24 hours, while message volume rose from low to high levels.

A Stocktwits user expressed optimism for a merger.

Another user highlighted the chances of the company being acquired by either Meta or Garmin.

GPRO stock has more than doubled over the past 12 months. 

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