GoPro: YouTuber is now largest shareholder, stock price jumps 50 percent

A 37-year-old YouTuber is now the largest shareholder of camera manufacturer GoPro, and its stock price has subsequently risen by almost 50 percent. Mark Fischbach – active on YouTube as “Markiplier” – has held 8.5 percent of GoPro shares for a few days. He told Bloomberg that he considers the manufacturer significantly undervalued: “I want the company to succeed.” GoPro itself made Fischbach’s investment public last week in a regulatory filing with the US Securities and Exchange Commission, but the stock rally only occurred yesterday, Monday. At a price of $0.88 per share, the stock remains well below its peak of $93.85 in 2014.

GoPro in trouble

In early June, GoPro admitted to the SEC significant doubts about its survival and announced that certain loan covenants might not be met. Year-over-year, revenue in the first quarter had decreased by 26 percent to $99 million, and camera sales dropped by 29 percent. However, this has not deterred “Markiplier,” he assured Bloomberg. Instead, the filmmaker describes his actions as part of a larger mission to make filmmaking more accessible. He has also invested in Strada, a company that offers tools for exchanging large files.

The tense situation in the memory market is partly responsible for the crisis at GoPro. On the one hand, the enormously increased prices are squeezing margins, the company stated in June. On the other hand, the low availability of components is an ever-growing problem. Memory suppliers announced production cuts in April for the memory used in GoPro products, causing the camera manufacturer to lower sales forecasts for certain products. However, the issues began long before the current memory crisis; the company has been struggling with declining demand for years. GoPro has therefore also explored a possible sale or merger.

Fischbach has now told Bloomberg that he visited a trade show in Las Vegas in April to get a glimpse of GoPro’s next camera. However, he was denied access. Following this, he attempted to recruit GoPro as a sponsor for his YouTube channel and began buying shares in the background. A few days ago, in a video, he promoted the new GoPro Mission 1 ILS and compared it to a competitor ten times its price. Whether he has actually initiated a turnaround in the company’s stock price with this and his investment in GoPro remains to be seen. Even after Monday’s jump, the stock is still 40 percent below its level at the beginning of the year.

(mho)