GPRO surged 37% on September 3, closing at $1.69 on volume exceeding 250 million shares.
The catalyst is the Starman Optical merger, where GoPro shareholders will receive ~$1.14 per share in cash and retain 10% of the combined company.
Reddit traders on r/smallstreetbets are calling it a high-risk, high-reward event name with short squeeze potential.
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Merger Catalyst Drives the Move
The primary catalyst behind GPRO’s surge is the announced merger with Starman Optical. Under the terms, GoPro shareholders are set to receive approximately $285 million in cash, or roughly $1.14 per share, and retain about 10% of the combined entity. The market is now trading well above that cash consideration, suggesting traders are betting on additional upside from the remaining equity stake and potential short squeeze dynamics.
One Reddit user on r/smallstreetbets questioned the logic: “Why is GPRO up to 1.90s after hours if the stock is getting force sold at 1.14 in 2027?” The post garnered 265 upvotes and 79 comments, reflecting the debate over whether the current price is sustainable given the forced sale price. Another user declared it “the biggest shorting opportunity since SpaceX,” while others countered that momentum and a short squeeze could carry it higher.
Technical Breakout and Retail Sentiment
Traders on r/smallstreetbets pointed to a cup-and-handle pattern forming on the weekly chart, with the stock breaking above resistance at $1.25. The RSI is in the 80s—extremely overbought—and the MACD is vertical, indicating pure momentum. One post titled “GPRO update – 37% day, overnight still ripping” detailed the gamma exposure setup, noting that the put and call walls are both at $1.50, and the stock is now trading above them, creating positive gamma conditions that could amplify moves.
The sentiment on r/smallstreetbets was overwhelmingly bullish, with an average sentiment score of 0.61 across 44 posts. The ticker ranked 43rd overall in Tendie.bot’s daily ranking, with 8 posts, 380 comments, and 638 upvotes. The rank delta of +1 suggests growing interest.
What’s Next for GPRO?
The stock’s trajectory hinges on whether the momentum can sustain itself. The merger provides a floor of sorts at $1.14, but the market is pricing in additional value from the combined company’s optics business. Short sellers may face pressure if the rally continues, but the overbought technicals suggest a pullback could be imminent. For now, GPRO remains a high-risk, high-reward event name that has captured the attention of retail traders.
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