GoPro Shares Jump 93% in 6 Months: Is the Upside Sustainable in 2026?

GoPro, Inc. GPRO has seen a remarkable rise of 93.2% in six months, outperforming the Zacks Audio-Video Production industry’s growth of 2% and the Consumer Discretionary market’s fall of 7.9%. The stock has also beaten 12.9% uptick of the S&P 500 composite. One of the biggest drivers behind the rally has been a strategic shift, positioning GoPro not just as a camera maker but as a technology and data play.Image Source: Zacks Investment ResearchMoreover, GPRO has topped several of its peers, including Sony Group Corporation SONY, Dolby Laboratories DLB and Sonos Inc. SONO. SONY and SONO have risen 2.3% and 62.1%, respectively, while DLB lost 15% during the same period. GPRO stock has a 52-week high of $3.05.While the underlying fundamentals have improved, and strategic initiatives such as AI data licensing and subscription growth offer a fresh growth story, risks remain. GoPro’s strategy is to diversify its business and expand its total addressable market (TAM). With three new hardware launches and multiple software enhancements, the company is positioning itself for a return to revenue growth, beginning in the fourth quarter of 2025 and extending into 2026.Let’s check what’s driving the rally.Broad Product Line & Execution Fuel GPRO’s Growth RevivalGoPro is benefiting from robust product innovation and cost discipline. The company introduced three new hardware products: the MAX2 360 camera, the LIT HERO camera and the Fluid Pro AI gimbal. GoPro’s aggressive push into new product categories aims to expand its TAM and reduce reliance on its core HERO lineup. In the third quarter, GoPro expanded its portfolio with the MAX2 360 camera, which delivers True 8K video, higher resolution than peers and durable, replaceable lenses. The company also launched LIT HERO, a compact, waterproof lifestyle camera, and Fluid Pro AI, marking its entry into the global gimbal market.On the software side, GoPro enhanced its 360 editing ecosystem with new tools across DaVinci Resolve, GoPro Player and the Quik app, adding AI-powered features and expanded platform support. Looking ahead, it plans a broader hardware and software rollout through 2025–2026, highlighted by the new GP3 processor, which is expected to set a new performance benchmark.GoPro’s subscription business continues to outperform expectations, delivering strong value to both users and profitability. The company expects subscriber and related revenue growth to reaccelerate in 2026, supported by higher camera sales and new editing and content-management features. Subscriber engagement remains robust, with strong participation in the AI training program, where contributors earn 50% of third-party licensing revenue. Since its limited launch in July 2025, subscribers have contributed more than 270,000 hours of video content.Retail remains GoPro’s dominant channel, accounting for 75% of total revenue in the third quarter ($123 million), though retail revenue fell 41% year over year. For 2026, GoPro expects sequential year-over-year growth in units and revenue, driven by its current lineup and new launches. Subscription ARPU is projected to rise 5%, with subscribers reaching 2–2.4 million. Adjusted EBITDA is forecast to exceed $40 million, marking a return to profitability. Operating expenses are expected to be about $250 million, slightly below 2025 levels, with roughly half of tariff impacts offset through pricing and supply-chain diversification despite some margin pressure from higher costs.Headwinds Tempering GPRO’s UpsideGoPro’s fourth-quarter outlook is shaped by elevated uncertainty stemming from volatile tariff rates, shifting consumer confidence, competitive pressures, supply-chain constraints and broader global economic risks. The company expects fourth-quarter sell-through to decline 18% year over year to nearly 625,000 units. The declining unit sales directly impact top-line growth. GPRO operates in a highly competitive camera and camcorder market. The market has an extensive presence of well-known camera makers such as Canon and Nikon.In addition, many electronics giants like Sony, Samsung and Panasonic have penetrated into the capture devices market, thereby pushing the level of competition a notch higher. GoPro's market share has been threatened by lower-cost alternatives from established industry players like Sony, Xiaomi, Garmin and HTC, as well as new entrants, which have led to the increasing commoditization of action cameras. As GoPro operates in the consumer goods sector, it has to substantially invest in advertising and marketing, as failure to do so impacts consumer demand.GoPro amended its Second Lien Credit Agreement in August 2025 to adjust interim 2026 covenants, accommodating higher camera tariff rates that increased from 10% to 19%. While tariffs remain a headwind, proactive covenant adjustments reduce near-term financial risk.GPRO Trades at a DiscountFrom a valuation perspective, GPRO is trading at a massive discount. Going by its trailing 12-month price-to-sales ratio, GPRO is trading at a multiple of 0.29, much below the industry’s ratio of 1.97.Image Source: Zacks Investment ResearchIn comparison, SONY, DLB and SONO are trading at multiples of 1.98, 4.29 and 1.39, respectively.Investors Action: Hold GPRO NowManagement emphasized meaningful progress toward restoring growth and profitability driven by new product launches, improving cash flow and healthier channel dynamics. As of the latest financials, GoPro still reported net losses, though improving margins and disciplined cost reduction are positioning it toward eventual profitability.With a Zacks Rank #3 (Hold), GPRO appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. 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(SONO): Free Stock Analysis Report Sony Corporation (SONY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks