Here's a plot twist for the company that brought you helmet-cam footage of skydivers and surfers: GoPro (GPRO) is now looking to get its cameras into the hands of soldiers and astronauts. Or at least, that's the new market it's exploring.
Shares of the action camera maker jumped over 29% in Tuesday's premarket session to $1.21 after the company announced it's officially scouting opportunities in the defense and aerospace sectors. This isn't just a casual brainstorming session—GoPro has brought in the big guns, hiring global management consulting firm Oliver Wyman to help figure out how its technology fits into these highly specialized, and highly regulated, markets.
Think of it this way: GoPro built its reputation on capturing extreme sports from the athlete's perspective. Now it wants to see if that same technology—rugged, portable, high-quality imaging—can be useful for, say, military reconnaissance drones or spacecraft documentation. The consulting project will specifically assess target segments, technology synergies, and partnership strategies. In other words, they're trying to figure out who might want to buy their cameras, how those cameras need to work differently, and who they should team up with to make it happen.
"Working with Oliver Wyman will help GoPro determine more formal and scalable opportunities within these sectors, taking into account the operational, regulatory, and commercial dynamics of those markets," said GoPro founder and CEO Nicholas Woodman. "We're excited to learn how our technology and know-how can be of service."
That last part—"of service"—is telling. This isn't just about selling more cameras to new customers. It's about positioning GoPro as a technology provider for mission-critical applications. The defense and aerospace markets don't just want cool gadgets; they need reliable tools that work under extreme conditions and comply with strict regulations. If GoPro can crack that code, it opens up a whole new revenue stream that's potentially much more stable than the consumer action camera market.
Earnings Context: The Backdrop for a Pivot
This strategic exploration comes at an interesting time for GoPro financially. Last month, the company reported fourth-quarter results that were... well, mixed.
On the disappointing side, they posted a loss of two cents per share, missing analyst estimates for earnings of four cents per share. But on the surprisingly good side, sales came in at $201.7 million, which absolutely crushed the consensus estimate of $90.1 million. That's not a typo—they more than doubled expectations on the top line.
Looking ahead, GoPro expects full-year 2026 sales between $750 million and $800 million, which brackets the current consensus estimate of $786.6 million. For the current first quarter, they're guiding to an adjusted loss per share between $(0.23) and $(0.17), which is notably wider than the consensus loss estimate of four cents. They do expect sales of $95-$105 million, however, which is above the street view of about $69.9 million.
So the picture is: decent sales momentum, but profitability remains a challenge. Exploring high-margin, enterprise-focused markets like defense and aerospace could be one way to address that profitability gap.
What the Charts Are Saying
From a technical perspective, GoPro's stock has been on quite a ride. It's currently trading 52.9% above its 20-day simple moving average and 32.6% above its 50-day SMA, which indicates some serious short-term momentum—likely fueled by today's news.
But zoom out a bit, and the picture gets more complicated. The stock is still 6.9% below its 100-day moving average and 21.7% below its 200-day moving average. That suggests that while there's excitement in the near term, the intermediate-to-longer term trend hasn't fully turned positive yet.
The relative strength index (RSI) sits at 62.13, which is in neutral territory—not overbought, not oversold. This often precedes a consolidation phase where the stock digests its recent move before deciding on its next direction.
Traders are watching two key levels:
- Key Resistance: $1.50. This has historically been a ceiling where upward moves have stalled.
- Key Support: $1.00. A psychological and technical floor that could attract buyers if the stock pulls back.
Despite the recent volatility, GoPro has actually had an impressive 12-month run, up 82.92%. It's currently trading near the middle of its 52-week range, which suggests a balanced, wait-and-see sentiment among investors overall.
More Than Just Cameras
It's worth remembering what GoPro actually is today. Yes, it's the action camera company. But it's also a company that sells mounts, accessories, lifestyle gear, apps, and subscriptions. It sells globally through retailers, distributors, and its own website. Its hardware is designed in the U.S., France, China, and Romania, with manufacturing largely outsourced to contract partners in China, Thailand, and Vietnam.
That global supply chain and product ecosystem might be part of what makes the defense and aerospace exploration plausible. It's not just about slapping a camouflage paint job on a Hero camera. It's about leveraging their expertise in durable, compact imaging systems and their manufacturing relationships to build something new for a completely different customer.
Whether this leads to actual contracts or remains an exploratory exercise is the billion-dollar question. But for now, investors are betting that there might be more to GoPro's future than just filming mountain bikers and snorkelers.
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