Looking to earn money? Consider building data centers, manufacturing batteries for these centers, or even shifting to the defense sector.
While not financial advice, this approach appears to be attracting public markets and private investors. Ford’s emerging energy storage division, still smaller than Tesla’s and expected to launch next year, has significantly boosted its stock. Redwood Materials secured $425 million from major players like Google and Nvidia by focusing on data center energy storage. Meanwhile, Cerebras had a successful IPO recently.
Defense startup investments continue to grow, with Anduril obtaining another $5 billion this week. Any company aiming for government contracts is likely pursuing them.
Enter GoPro.
The action camera maker has endured numerous challenges over the years. During the 2010s, the phrase “GoPro killer” was frequently used, similar to “Tesla killer” or “iPhone killer,” with competitors like a TomTom action camera or even Google’s Clips attempting to overtake the category creator.
However, survival hasn’t equated to success for GoPro lately. Sales have declined, losses increased, and its stock price has stagnated around $1 for two years. Recently, GoPro announced plans to explore opportunities in the defense and aerospace sectors.
This strategy is sensible for a company known for high-quality, durable cameras capable of withstanding extreme conditions. The pivot briefly doubled GoPro’s stock price, but it eventually dropped again, indicating that a shift to defense may not be a foolproof solution.
As anticipated, GoPro revealed on Thursday that it had engaged Houlihan Lokey to evaluate a “potential sale and other strategic alternatives.” The board acknowledged receiving several unsolicited strategic inquiries from diverse sectors, essentially signaling concern.
Previously, in 2018, GoPro considered selling the company. But now, the situation is more critical. With deteriorating finances, GoPro announced layoffs affecting 25% of its workforce, reducing its staff to just over 600 from a peak of 1,500 employees.
GoPro was once a tech favorite. However, it’s now navigating a more uncertain landscape. The company’s interest in a growing Pentagon budget reflects this volatile market.
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