Shares of GoPro surged nearly 19% in early premarket trading on Tuesday, extending gains from the previous session.

The massive surge today comes as investors reacted to the company’s move to explore opportunities in the defence and aerospace sector.

The sharp move reflects growing investor interest in companies tied to defence-linked technologies, amid heightened geopolitical tensions and increased military activity.

New growth avenue in defence and aerospace

GoPro on Monday said it will pursue new market opportunities for its technology within defence and aerospace, engaging consulting firm Oliver Wyman to assess potential pathways.

The company noted that its cameras are already widely used in demanding environments where durability, video stabilisation and image quality are critical.

The collaboration will focus on identifying operational use cases aligned with evolving mission requirements.

“GoPro’s brand is well known within defence, government and aerospace sectors,” said Chief Executive Nicholas Woodman.

He added that the company’s cameras have been deployed in diverse applications, including being mounted on the Artemis II Orion spacecraft and used for onboard documentation.

Woodman said working with Oliver Wyman would help identify “more formal and scalable opportunities” while accounting for the operational, regulatory and commercial dynamics of these sectors.

The project will involve analysing addressable segments, potential product synergies, and partnership strategies, while engaging with government and aerospace stakeholders to ensure compliance with stringent standards.

Timothy Wickham, a partner at Oliver Wyman, said defence clients are increasingly adopting commercially available technologies.

“The opportunity is significant and growing, with the global defence and aerospace imaging, unmanned, and related markets representing billions of dollars of addressable market,” he said.

Turnaround efforts amid declining core business

The strategic pivot comes as GoPro seeks to revive its business following several years of declining sales.

Revenue has fallen for four consecutive years, including double-digit percentage declines in the last two, amid intense competition from rivals such as Insta360 and DJI.

Advances in smartphone camera technology have further eroded demand for standalone action cameras, pressuring GoPro’s traditional product lines.

To counter these challenges, the company has been focusing on higher-margin offerings and transitioning toward a subscription-led model, while also expanding into new sectors.

It has introduced artificial intelligence-driven products, including an image processor, as part of efforts to diversify its portfolio.

Earlier this month, GoPro’s board approved a restructuring plan that includes cutting 23% of its workforce, with completion expected by the end of the year.

The company has also been reducing operating expenses, reporting a 26% cut in costs in its most recent fourth quarter.

Despite these measures, profitability remains elusive.

GoPro reported a loss of $9.1 million, or 6 cents per share, in the fourth quarter, even as it had earlier projected a return to profitability by the end of fiscal 2025.

Woodman had flagged macroeconomic pressures, including tariffs, memory costs and supply constraints, as ongoing challenges.

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