GoPro warned it may not survive

4 hours ago

GoPro issued a going-concern warning due to an 80-115% increase in memory prices, driven by suppliers shifting production to high-margin AI chips.
Revenue fell 26% in Q1, and the company risks breaching loan covenants, leading to potential default and a 14% stock drop.
Strategic alternatives include exploring a sale or merger, pivoting to defense and aerospace markets, and cutting 23% of global staff.
The memory shortage is structural, affecting consumer electronics broadly, with companies like Dell and Apple raising prices, but GoPro lacks purchasing power to absorb costs.
GoPro's crisis highlights wider risks for thin-margin, DRAM-dependent consumer electronics firms amid the AI-driven memory reallocation favoring hyperscalers and memory makers.

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