Key facts
- YouTuber Markiplier (Mark Fischbach) is now GoPro's largest shareholder with an 8.5% stake.
- The stock has rallied 173% since Friday's close.
- Fischbach stated he believes the stock was undervalued and wants the company to succeed.
- GoPro announced a merger with Starman Optical to expand into data centers and defense tech.
- Some analysts caution that fundamentals do not support the current stock valuation.
YouTuber Markiplier, whose real name is Mark Fischbach, has become the largest shareholder in camera maker GoPro, acquiring an 8.5% stake valued at approximately $20 million. This development has ignited interest from meme stock traders, propelling GoPro's stock to surge 173% since Friday's close and reach an intraday high of $1.64 on Tuesday.
Fischbach stated in an interview that he saw the stock as undervalued and has been "cooking" this investment in the background, expressing a desire for the company to succeed. GoPro's cameras are popular among content creators, but the stock has experienced a significant decline, falling about 90% over the past five years, making it a target for short-sellers.
Retail traders are now actively buying shares following the news of Markiplier's investment. One user on Reddit's r/Valueinvesting forum noted that the momentum was driven by a popular content creator who uses the product and invested significant capital. Another user expressed hope for a stable share price between $10-$11.
Adding to the stock's interest, GoPro announced a merger with Starman Optical, a photonics equipment maker, which is expected to position GoPro for expansion into areas like data centers and defense technology. Content creator Hunter Weiss highlighted the stock's move and the merger, calling it a potential "meme" stock.
Markiplier's substantial investment is reminiscent of other meme stock phenomena. However, trader Dimitri Semenikhin cautioned that the fundamentals do not support the rally, pointing to the company's limited cash, ongoing losses, and high debt.