Track market-moving stories before they get noisy

Synopsys, Inc. (SNPS) Presents at Mizuho Technology Conference 2026 Transcript

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VSEC Doubles Down With $2B Deal 4:17 pm — VSEC +13.45%

By Seth Jayson
Team Rule Breakers

If you don’t count VSE Corp’s (VSEC +1.54%) post- “cease fire” bounce, it would be a quiet week for this aviation aftermarket parts-and-repair outfit. The big story remains the pending $2 billion acquisition of Precision Aviation Group, which is supposed to close sometime this quarter and would roughly double the company’s scale. That’s the kind of bet that either looks brilliant in three years or keeps the CFO up at night—probably both. Citi trimmed its price target on April 2 but kept their buy rating, which feels like the analyst equivalent of saying “I still like you, just manage my expectations.” I’m not a huge fan of the business, so the stock price action sometimes confuses me.

Growth has been meh for a while, but of course that’ll be upended by the acquisition:

Closing Bell 4:08 pm

Stocks surged after a two-week U.S.–Iran ceasefire tied to reopening the Strait of Hormuz sent oil sharply lower, easing inflation pressure and reviving rate-cut hopes. The Dow jumped 1,300 points while crude saw its steepest drop since 2020. Cyclical and supply-chain-sensitive stocks led—Broadcom (AVGO 0.85%) and Micron Technology (MU 1.02%) rallied—while energy lagged, with Exxon Mobil (XOM +0.28%) down. The move reflects a market pricing normalization, but the path forward depends on whether oil flows actually resume.

Oil’s message vs. reality: Crude collapsed on headlines, not barrels. Shipping remains thin. If flows stall, pricing power can snap back quickly. Volatility isn’t gone: A two-week pause isn’t peace. Geopolitics still sets the tape. Axon Rebounds After 10% Drop 3:58 pm — AXON +4.71%

Shares of Axon Enterprise (AXON 1.00%) bounced after a sharp 10% drop, with analysts calling the sell-off non-fundamental. Notes from TD Cowen, Morgan Stanley, and Goldman Sachs pointed to steady demand and positive signals from Axon Week, while broader markets also lifted on easing geopolitical tension. The stock’s price-to-sales ratio has fallen near 10—its lowest since 2023—resetting expectations as growth remains intact.

When price moves, but business doesn’t: Analysts framed the drop as sentiment-driven, not operational—often where long-term investors find opportunity. Valuation meets narrative: A lower multiple plus continued adoption of TASER, body cams, and software could amplify upside—if execution holds.

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441.73

Micron’s 10% Rally Tests Skeptics 3:21 pm — MU +6.97%

Shares of Micron Technology (MU 1.02%) jumped about 7% midday after UBS (UBS +1.62%) raised its price target to $535, implying about 42% upside from prior levels. The call leans on a memory “super-cycle,” tied to AI demand, as investors rotate back into growth stocks amid easing macro tensions. The move follows mixed recent sentiment, with prior downgrades and lower targets from other firms.

Targets vs. truth: Price targets move fast but Fools know that business results don’t. Last month, Motley Fool analyst Seth Jayson called out analysts "falling over each other to raise price targets" on Micron. He cautioned, "At some point the math gets circular. But the underlying demand story is real enough that a patient observer can watch this one without feeling rushed." Cycle check: If AI demand sustains memory pricing, earnings leverage can follow. If not, cyclicality can cut both ways. Jayson continued, "The question is, of course, when does the typical cyclicality return? Right now everyone believes it’s gone forever. Unlikely."

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Forecasts Fail as Data Swings Wild 2:55 pm

Wall Street’s crystal balls may need a polish. Economists are struggling to forecast the labor market in 2026, missing monthly job estimates by an average of 112,000—nearly triple last year’s gap—as shifting immigration trends, strikes, weather, and technical changes distort the data. Many forecasters cluster near consensus, which can amplify surprise—and volatility—when reality diverges, raising the stakes for markets reacting to each report and for expectations around Federal Reserve policy.

Signals vs. noise: Monthly swings are widening, making it harder to separate real trends from temporary disruptions—and increasing the odds of sharp market reactions. Foolishly speaking, stay the course: Andy Cross, the Motley Fool's Chief Investment Officer, called the most recent jobs report "decent," adding that, overall, "it’s not a dire showing though anecdotally the job market is difficult with continued lay-offs." Forecast errors rattle traders, not owners; long-term investors can lean into volatility. FedEx Freight Plots Solo Future 2:33 pm — FDX +4.20%

FedEx (FDX +0.09%) is preparing to spin off its freight unit on June 1, positioning the business as a standalone growth story. At an investor day, FedEx Freight outlined plans to streamline its network, modernize technology, and expand commercial offerings, targeting 4%–6% annual revenue growth and 10%–12% operating income growth. The separation reflects FedEx’s broader strategy to sharpen focus on its core air-ground network while unlocking value in its less-than-truckload segment. Shares will list on the New York Stock Exchange under the ticker "FDXF."

Margin story in motion: Management is aiming for faster profit growth than revenue, signaling a shift toward efficiency and pricing discipline as an independent operator. Network rethink underway: Cost savings will come from fleet and route optimization, a lever that could define execution risk—or upside—post-spin.

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Siri's AI Overhaul Aims to Save Apple Stock 1:15 pm -- META +7.5%

Retail investors are taking another bite of Apple (AAPL 1.52%), snapping up a net $65.3 million in shares Tuesday — the highest single-day buying spree since mid-2025. Despite recent geopolitical volatility and a 5% year-to-date decline, the bulls are returning to the fold. Investors are eyeing a massive 2026 upgrade cycle fueled by the "iPhone Fold" entering trial production and a long-awaited AI-driven overhaul of Siri through a multiyear partnership with Alphabet (GOOG +0.45%).

The Foldable Reality Check: While some reports hint at engineering delays, analysts at Evercore ISI maintain a $330 price target, insisting large-scale production of the book-style foldable remains on track for a September launch. The Intelligence Infusion: Beyond hardware, June’s WWDC is expected to be a pivotal catalyst as Apple details how its "Apple Intelligence" will integrate Gemini to simplify AI workflows for developers and users alike.

Today's Lunchtime News 1:00 pm -- META +9.3%, GOOG +4.2%, NVDA +2.0%

Meta (META 0.14%), Amazon (AMZN 1.24%), Alphabet (GOOG +0.45%), and Nvidia (NVDA +0.15%) led the Magnificent Seven higher as the ceasefire-driven rally rippled through tech. Chipmakers surged even harder, with Taiwan Semiconductor (TSM +0.46%), ASML (ASML 1.70%), Applied Materials (AMAT +2.69%), and Micron (MU 1.02%) all jumping 7% or more.

Recovering from a brutal Q1: Tech stocks bore the brunt of the war-driven sell-off, with Microsoft (MSFT +0.11%) slumping 23% in the first quarter on compounding concerns about its AI strategy -- a steeper drop than any Mag Seven peer. Fragile foundation: Ship traffic through the Strait of Hormuz has yet to normalize, and a Saudi pipeline was hit by a drone hours after Trump's ceasefire post, leaving investors cautious about how durable the rally will be.

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205.18

Meta Spends Billions to Catch OpenAI 12:15 pm -- META +4.7%

Meta Platforms (META 0.14%) launched "Muse Spark" Wednesday, marking a sharp strategic pivot after its Llama 4 family failed to gain traction. Developed by Meta Superintelligence Labs under chief AI officer Alexandr Wang, this proprietary model replaces the company’s former open-source approach to better compete with Alphabet (GOOG +0.45%) and OpenAI. Rebuilt from the ground up following a $14.3 billion investment in Scale AI, Muse Spark is designed to handle complex reasoning in science and health while requiring significantly less compute than previous iterations.

Strategic About-Face: By locking down Muse Spark as a proprietary model, Meta is prioritizing monetization and performance over the developer-friendly open-source philosophy it previously championed.

Efficiency Gains: The new architecture allows the model to match the capabilities of midsize predecessors with an order of magnitude less processing power, potentially protecting Meta’s massive infrastructure margins.

Bitcoin Jumps to Three-Week High 11:10 am -- BTC -1.4%

Bitcoin (BTC 0.06%) surged 5% on Wednesday morning to a three-week high of $72,841 as digital assets mirrored a broader market rally following the U.S.-Iran ceasefire. This risk-on sentiment lifted Ether (ETH 0.80%) over 7% while crude prices saw their steepest decline in years. Investors are increasingly optimistic that a cooling Middle East conflict will lower inflation and prompt the Federal Reserve to reconsider interest-rate cuts. While Bitcoin remains roughly 40% below its $126,000 October peak, the sudden easing of geopolitical pressure has provided the necessary momentum to test the upper bounds of its recent $60,000 to $75,000 trading range.

Stubborn Resistance Levels: Despite the price jump, analysts warn that Bitcoin faces significant technical selling pressure around $75,000, a barrier it has struggled to clear since the conflict began in February. The Macro Pivot: Future price action remains tethered to the Strait of Hormuz; a permanent reopening could further depress oil, potentially providing the definitive deflationary spark needed for a sustained crypto bull run.

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Who Survives Software’s Reckoning? 11:05 am

By Meilin Quinn
Team Hidden Gems

Software stocks are down more than 20% this year, and the carnage has gotten bad enough to earn a nickname. Investors are calling it the SaaSpocalypse.

Once a sell-off starts attracting the sort of branding that surrounds things like the dot-com bubble and the Great Recession, that's Wall Street's cue that something deeper is breaking. And I think the market has good reason to be nervous.

For years, software companies had a nice setup. Work flowed through employees, employees worked through software, and every one of those employees needed a software user license. The problem now is that agents, or AI systems that can work across different tools on their own, are starting to handle more of that work without a human in the middle.

If more work gets done this way, companies may not need as many employees doing those tasks in software, which means they may not need as many licenses. What's more, companies can now credibly threaten to build software replacements in-house, which means SaaS pricing power could erode even before seat counts drop.

Of all the announcements at Nvidia's (NVDA +0.15%) GTC conference in March, the one that felt most instructive to me was Jensen Huang's reveal of the software partners behind Nvidia's agentic push. I think that list is a good starting point for separating the software companies agents will rely on from the ones agents might start to displace.

The $134B Fight for the Future of AI 10:10 am

Elon Musk has escalated his legal offensive against OpenAI, filing for the removal of CEO Sam Altman and President Greg Brockman just weeks before jury selection begins. Musk alleges he was defrauded into donating $38 million to a nonprofit that shifted into a profit-seeking powerhouse. The world's richest man is also demanding that Microsoft (MSFT +0.11%) and OpenAI return up to $134 billion in "wrongful gains" to charity. This high-stakes brawl in Oakland federal court directly pits Musk's xAI — now part of the $1.25 trillion SpaceX empire — against his former colleagues in a fight that could reshape the AI industry's leadership and corporate structure.

The Silicon Valley Civil War: OpenAI is firing back, accusing Musk of a harassment campaign aimed at slowing down a competitor to his own interests, including Tesla (TSLA +1.65%) and the newly merged SpaceX-xAI entity. IPO Complications Loom: With SpaceX recently filing for a record-breaking IPO, the outcome of this trial could dictate whether Musk can successfully dismantle the dominant market position of his rivals before going public. Fed Rate Cut Back on the Table 9:40 am

The fragile U.S.-Iran ceasefire has fundamentally shifted market expectations for the Federal Reserve. According to the CME Group FedWatch tool, odds for a rate reduction by December jumped to 43%, up from just 14% before the truce. As energy-driven inflation threats subside alongside plunging oil prices, traders are betting Chair Jerome Powell may finally have the breathing room to shore up a plodding labor market. While policymakers likely remain cautious until a permanent deal is reached, the "inflation shock" that previously paralyzed the Fed is rapidly dissipating.

Inflation Data Dual-Threat: Investors face a volatile 48 hours as Thursday’s PCE index and Friday’s CPI report reveal the exact damage hostilities inflicted on consumer prices before the ceasefire took hold. Global Domino Effect: Analysts at Evercore ISI suggest a successful negotiation could trigger a coordinated easing cycle, putting rate cuts back in play for the European Central Bank and the Bank of England.

Opening Bell 9:35 am

Wall Street erupted in a massive relief rally Wednesday after President Trump announced a two-week suspension of attacks on Iran. The "double-sided" ceasefire, contingent on the reopening of the Strait of Hormuz, triggered a 16% collapse in crude prices and a broad rotation back into growth equities. Beyond the shipping channel, markets are reacting to a potential breakthrough regarding the removal of nuclear material from Iran in exchange for tariff and sanctions relief.

Market indexes

S&P 500

2.58%

Nasdaq

3.50%

Dow

2.97%

Delta Cuts Capacity to Guard Margins From Fuel 8:00 am -- DAL +12.37% in pre-market trading

Delta Air Lines (DAL +1.56%) CEO Ed Bastian is taking aggressive action to combat a "historic" spike in fuel costs, announcing a meaningful reduction in capacity growth to prioritize margin preservation. Despite the $2 billion quarterly fuel headwind caused by Middle East hostilities, Bastian remains bullish on the "durability" of the airline's financial foundation and its premium-heavy customer base. "Demand remains strong, and we are taking actions to protect our margins and cash flow," Bastian told reporters Wednesday, noting a "downward bias" on growth until the energy environment stabilizes. While competitors struggle with unhedged exposure, Bastian highlighted Delta's unique advantage in owning a refinery near Philadelphia, which is expected to generate a $300 million benefit this quarter.

Industry-Wide Shakeup: Bastian anticipates that persistently high fuel prices will force "structural changes" across the sector, likely pressuring low-cost carriers while favoring premium-focused giants like United Airlines (UAL +2.58%). Consumer Resilience: Despite rising fares and new baggage fees, Bastian observed that 90% of revenue is coming from the top end of the "K-shaped" economy, stating, "Our consumer is really healthy... they're investing in the experience economy."

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83.11

Greece Sets 15+ Rule for Social Platforms 7:45 am -- META +4.95%, SNAP +5.21%, GOOG +3.96% in pre-market trading

Greek Prime Minister Kyriakos Mitsotakis confirmed Wednesday that Greece will ban children under 15 from social media platforms starting January 1, 2027. Citing a "scientific consensus" on rising anxiety, sleep deprivation, and addictive platform designs, the mandate follows a similar restrictive move by Australia. With 80% domestic adult support, Mitsotakis aims to use this initiative as a catalyst for broader European Union regulation. The Greek Safer Internet Centre reports that 75% of current young users are only primary-school age, highlighting the significant demographic shift this policy will force upon major digital advertising and engagement models.

Big Tech Revenue Risks: Stricter age gates pose a direct threat to the long-term user acquisition funnels for Meta Platforms (META 0.14%) and Snap (SNAP 1.31%), potentially cooling engagement metrics in the Eurozone. Regulatory Contagion: As Greece pressures the EU for unified age limits, Alphabet (GOOG +0.45%) may face increased compliance costs and potential ad-revenue declines if YouTube and other social hubs are swept into broader continental bans.

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This Morning's Breakfast News 7.30am

S&P 500 futures soared over 2.5% this morning, with Nasdaq futures up over 3%, as investors cheered confirmation of a two-week ceasefire between the U.S. and Iran, alongside the reopening of the key Strait of Hormuz.

Pakistan invites both sides for talks on Friday: Pakistan's Prime Minister said he's setting the stage "to further negotiate for a conclusive agreement to settle all disputes," as markets assess if the 10-point plan for the conditional ceasefire can lead to a broader de-escalation. Risk-on cross-asset market reaction: Brent oil futures fell over 14% lower to $93 per barrel, with Bitcoin (BTC 0.06%) up 3.6% to $71,800 and gold rallying over 2% above $4,800 per ounce.

ICYMI: Tuesday's Scoreboard 6:30 am -- FRPT +4.60% in pre-market trading

Freshpet (FRPT +0.84%) was the subject of the latest Scoreboard video.

GoPro Slashes 23% of Staff in Restructuring 6:15 am -- GPRO +2.30% in pre-market trading

GoPro (GPRO 1.78%) announced plans to eliminate 23% of its workforce as the action-camera pioneer fights to reverse persistent losses. The restructuring, involving 145 layoffs by year-end, comes after the company missed its 2025 profitability target despite aggressive cost-cutting efforts. CEO Nicholas Woodman cited mounting macroeconomic pressures--including high memory costs and tariffs--as primary obstacles to growth. While the company is pivoting toward AI-driven hardware and processors to revitalize its brand, it must first navigate an estimated $15 million charge for this latest round of downsizing.

Persistent Growth Hurdles: Despite cutting expenses by 26% last year, GoPro's full-year revenue continues to slide, highlighting the difficulty of competing against high-end smartphones and versatile hardware from Alphabet (GOOG +0.45%). AI Transformation Bet: The company is pinning its recovery on new GP3 imaging processors and AI software integration, attempting to evolve from a hardware-only play into a high-margin digital ecosystem.

White House Holds Firm as Ford Absorbs $3B Hit 5:45 am -- F +2.86% in pre-market trading

The Trump administration has rejected requests from Ford (F +0.78%) and other automakers for relief from 50% aluminum tariffs following devastating fires at a key New York supply plant, per The Wall Street Journal. The Novelis facility, which provides sheet metal for the best-selling F-150, remains offline, forcing manufacturers to import metal at a massive premium. Ford estimates the disruption has already cost $2 billion, with another $1 billion in losses expected this year. Despite a January factory visit from the President, officials have signaled no intention to waive duties, leaving domestic automakers to absorb surging delivery premiums that now reach $2,500 per metric ton.

Detroit's Bottom Line: The refusal to grant exemptions squeezes margins for General Motors (GM +0.80%) and Stellantis (STLA 0.29%), as a new tariff overhaul may soon tax finished metal components even more aggressively. Supply Chain Fragility: Dependence on the Oswego plant highlights a single point of failure for U.S. auto production, as even Berkshire Hathaway (BRKB +0.55%) subsidiaries in the manufacturing sector face rising costs for domestic aluminum. Before the Opening Bell 4:00 am

Stock futures surged Wednesday following the announcement of a two-week ceasefire between the U.S. and Iran, narrowly averting a massive military escalation. Just hours before a critical bombing deadline, President Trump and Iranian officials agreed to a temporary cessation of hostilities and a coordinated reopening of the Strait of Hormuz. International crude prices cratered nearly 15% on the news, with Brent crude falling to approximately $93 per barrel as supply chain panic eased. While the long-term outlook remains uncertain, the immediate de-escalation provides a vital reprieve for global markets and energy-sensitive sectors.

Airline Earnings Impact: Delta Air Lines (DAL +1.56%) reports quarterly results this morning, with investors laser-focused on how recent jet fuel spikes and Middle East flight suspensions dented the bottom line. Refining Advantage: Despite sectorwide fuel pressure, Delta may show relative resilience compared to peers due to its ownership of a Pennsylvania refinery, providing some insulation from the volatile oil markets dominated by Berkshire Hathaway (BRKB +0.55%) energy holdings.

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.

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.

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.

Recognized by RedShark News, ProductionHUB, and CineD—Leading Media Outlets Covering the Professional Production Industry for Innovation and Excellence in Camera Technology

, /PRNewswire/ -- GoPro (NASDAQ: GPRO) today announced that its MISSION 1 Series of cameras—the world's smallest, lightest, and most rugged 8K and 4K Open Gate, high frame rate cinema cameras—have been recognized with three prestigious awards at the 2026 NAB Show, the industry's premier event for broadcast, media, and entertainment professionals. Built around a new 50MP 1" sensor and GoPro's new, ultra‑efficient GP3 processor, the MISSION 1 Series was named one of six recipients of the RedShark Best in Show Awards from RedShark News, while the MISSION 1 PRO ILS camera earned one of ten ProductionHUB Awards of Excellence and was the sole winner of the CineD Best-of-Show Award in the Camera Category.

GoPro MISSION 1 Series Cameras Earn Three Top Industry Awards at NAB Show 2026 "These awards honor the incredible innovation and dedication of GoPro's employees. These awards go to them," said Nicholas Woodman, GoPro's Founder and CEO. "GoPro's MISSION 1 Series of compact cinema cameras is ushering in a new era of performance and capability in affordable, small form factor cameras, and we're excited the industry has responded with so much enthusiasm."

AWARDS SUMMARY
RedShark News
GoPro's MISSION 1 Series was named one of six recipients of the RedShark Best in Show Awards, recognizing standout innovation and performance at NAB Show 2026.

ProductionHUB
GoPro's MISSION 1 PRO ILS camera was selected as one of ten recipients of the ProductionHUB Awards of Excellence, honoring the most impressive products and technologies showcased at the event.

CineD
GoPro's MISSION 1 PRO ILS camera received the single CineD Best-of-Show Award in the Camera Category, distinguishing it as the top camera innovation at NAB Show 2026.

Customers can reserve their MISSION 1 ($599.99 MSRP and $499.99 at GoPro.com for existing GoPro subscribers1) or MISSION 1 PRO ($699.99 MSRP and $599.99 at GoPro.com for existing GoPro subscribers1) at GoPro.com and receive a new MISSION 1 SERIES Point and Shoot Grip (a $100 value) for free with their order. This offer is for a limited time and while supplies last. Reserve your new MISSION 1 or MISSION 1 PRO now and be among the first to get hands on the world's smallest, lightest and most durable high resolution, high frame rate cinematic camera system.

Global, on-shelf availability begins May 28th for MISSION 1, MISSION 1 PRO and MISSION 1 PRO Grip Edition. MISSION 1 PRO ILS, MISSION 1 PRO Creator Edition, and MISSION 1 PRO Ultimate Creator Edition will be available in Q3 2026. Sign up to be notified of product availability at GoPro.com.

About GoPro, Inc. (NASDAQ: GPRO)
GoPro helps the world capture and share itself in immersive and exciting ways. Connect with GoPro on Instagram, YouTube, TikTok, Facebook, X, LinkedIn, and GoPro's blog, The Current. Members of the press can access official logos and imagery on our press portal. For more information, visit GoPro.com.

GoPro, HERO, MAX, MISSION and their respective logos are trademarks or registered trademarks of GoPro, Inc. in the United States and other countries. Other trademarks are the property of their respective owners.

Note on Forward-looking Statements
This press release may contain projections or other forward-looking statements within the meaning Section 27A of the Private Securities Litigation Reform Act. Words such as "anticipate," "believe," "estimate," "expect," "intend," "should," "will," "plan" and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements in this press release may include, but are not limited to, statements related to the Company's MISSION 1 Series camera lineup, product performance and specifications, product and accessory pricing and availability timing, subscription benefits and subscriber pricing, promotional offers, accessory ecosystem rollout, and the Company's positioning for long-term growth in the premium imaging category. These forward-looking statements are based on the Company's current expectations and inherently involve significant risks and uncertainties. The Company's actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to consumer demand and market adoption of the new premium product line, competition in the digital imaging and premium camera markets, product launch timing and execution, supply chain, component availability and cost, the ability to successfully enter and compete in professional and premium camera segments, and pricing and margin pressures. A further description of the risks and uncertainties relating to the business of the Company is contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the "SEC") on March 12, 2026. These forward-looking statements speak only as of the date hereof or as of the date otherwise stated herein. The Company undertakes no duty or obligation to update any forward-looking statements contained herein as a result of new information, future events or changes in its expectations.

1 Existing GoPro subscribers can take advantage of available GoPro subscription benefits and get $100 off the purchase of any MISSION 1 Series camera and up to $150 off MISSION 1 Series camera and accessory bundles. Available to yearly subscribers only upon subscription renewal.

SOURCE GoPro, Inc.

Revenue of $99 million

Subscription and Service Revenue of $27 million

New MISSION 1 Series of Cameras Positions GoPro to Compete at the High End of the Digital Imaging Market

, /PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO) announced financial results for its first quarter ended March 31, 2026, and posted management commentary in the investor relations section of its website at https://investor.gopro.com. In a separate release, GoPro announced today that its Board of Directors has authorized the Company to engage in a process to review strategic alternatives, and to engage a financial advisor to assist with that process.

"In Q1, revenue of $99 million was within guidance," Brian Tratt, GoPro's CFO. "We made meaningful progress on key metrics—cash used in operations improved $21 million year-over-year to $37 million, operating expenses declined year-over-year, and we continued to reduce both owned and channel inventory sequentially and year-over-year."

"Q1 and the weeks since have been a pivotal period for GoPro. The critically acclaimed launch of our MISSION 1 Series cameras represents our boldest step yet into professional imaging, and our exploration of defense, aerospace and strategic M&A opportunities reflects our belief that there is significant unrealized value in GoPro's technology, IP and brand—value we are committed to realizing on behalf of our shareholders," said Nicholas Woodman, GoPro's founder and CEO.

Q1 2026 Financial Results

Revenue was $99 million, down 26% year-over-year. Sell-through was approximately 313,000 camera units, down 29% year-over-year. Subscription and service revenue was flat year-over-year at $27 million. GoPro subscriber count ended Q1 at 2.26 million, down 8% year-over-year. Revenue from the retail channel was $61 million, or 61% of total revenue and down 35% year-over-year. GoPro.com revenue, including subscription and service revenue, was $38 million, or 39% of total revenue and down 6% year-over-year. GAAP gross margin was 4.3% compared to 32.1% in the prior year quarter. Non-GAAP gross margin was 4.5% compared to 32.3% in the prior year quarter. GAAP and non-GAAP gross margin for Q1 2026 included a discrete $24.5 million charge related to certain component purchase commitments and $4.5 million sale of slow-moving inventory. GAAP net loss was $81 million, or a $(0.50) loss per share, compared to a net loss of $47 million or a $(0.30) loss per share, in the prior year quarter. Non-GAAP net loss was $58 million, or a $(0.35) loss per share, compared to a net loss of $19 million or a $(0.12) loss per share, in the prior year quarter. GAAP and non-GAAP net loss for Q1 2026 included a discrete $24.5 million charge related to certain component purchase commitments and $4.5 million sale of slow-moving inventory. Adjusted EBITDA was negative $50 million compared to negative $16 million in the prior year quarter. Recent Business Highlights

In May, GoPro launched its new MISSION 1 Series of cameras—the world's smallest, lightest, and most rugged 8K and 4K open gate, compact cinema cameras for filmmakers, creators and aspiring enthusiasts. The new lineup is comprised of three camera models—MISSION 1 PRO, MISSION 1 PRO ILS and MISSION 1. The launch of the MISSION 1 Series marks GoPro's entrance into the high end of the digital imaging market.  In April, GoPro announced plans to formally explore global defense and aerospace market opportunities, engaging leading management consulting firm Oliver Wyman to assess addressable market segments, product synergies, and go-to-market strategies in imaging, unmanned, and related markets representing billions of dollars in opportunity. In March, GoPro announced a partnership with DICK's Sporting Goods and integration with their GameChanger app, the number-one-rated youth sports app used by more than nine million active users, for scorekeeping, live streaming, statistics, and team management. This partnership combines GoPro's industry-leading video quality with GameChanger's easy-to-use live streaming service, making it simple for families to use their GoPro to capture and share game day. In January, GoPro announced a partnership with ASUS, a leading Taiwanese multinational technology company, and launched a co-branded ASUS ProArt GoPro Edition laptop. The laptop was purpose-built by ASUS to support GoPro content creator workflows. Early traction has far exceeded ASUS's expectations for the ProArt line, reinforcing the strength of GoPro's brand in technology collaborations. Results Summary:

($ in thousands, except per share amounts)

Three months ended March 31,

2026

2025

% Change

Revenue

Hardware revenue

$       72,150

$      107,419

(32.8) %

Subscription and services revenue

26,915

26,889

0.1 %

Total revenue

$       99,065

$      134,308

(26.2) %

Gross margin

GAAP

4.3 %

32.1 %

(2,780) bps

Non-GAAP

4.5 %

32.3 %

(2,780) bps

Operating loss

GAAP

$      (57,245)

$       (45,208)

26.6 %

Non-GAAP

$      (54,137)

$       (18,660)

190.1 %

Net loss

GAAP

$      (80,820)

$       (46,709)

73.0 %

Non-GAAP

$      (57,676)

$       (19,444)

196.6 %

Diluted net loss per share

GAAP

$          (0.50)

$           (0.30)

66.7 %

Non-GAAP

$          (0.35)

$           (0.12)

191.7 %

Adjusted EBITDA

$      (49,781)

$       (15,707)

216.9 %

Conference Call

GoPro management will host a conference call and live webcast for analysts and investors today at 2 p.m. Pacific Time (5 p.m. Eastern Time) to discuss the Company's financial results.

Prior to the start of the call, the Company will post Management Commentary on the "Events & Presentations" section of its investor relations website at https://investor.gopro.com. Management will make brief opening comments before taking questions.

To listen to the live conference call, please dial +1 833-461-5787 (US) or +1 585-542-9983 (International) and enter access code 163668947, approximately 15 minutes prior to the start of the call. A live webcast of the conference call will be accessible on the "Events & Presentations" section of the Company's website at https://investor.gopro.com. An archived audio webcast will be accessible for at least 90 days on GoPro's website, https://investor.gopro.com.

About GoPro, Inc. (NASDAQ: GPRO)

GoPro helps the world capture and share itself in immersive and exciting ways.

Connect with GoPro on Instagram, YouTube, TikTok, Facebook, X, LinkedIn, and GoPro's blog, The Current. Members of the press can access official logos and imagery on our press portal. For more information, visit GoPro.com.

GoPro, HERO, MAX, MISSION and their respective logos are trademarks or registered trademarks of GoPro, Inc. in the United States and other countries.

Note Regarding Use of Non-GAAP Financial Measures

GoPro reports gross profit, gross margin percentage, operating expenses, operating income (loss), other income (expense), tax expense (benefit), net income (loss) and diluted net income (loss) per share in accordance with U.S. generally accepted accounting principles (GAAP) and on a non-GAAP basis. Additionally, GoPro reports non-GAAP adjusted EBITDA. Non-GAAP items exclude, where applicable, the effects of stock-based compensation, acquisition-related costs, restructuring and other related costs, (gain) loss on insurance proceeds, (gain) loss on extinguishment of debt, (gain) loss on revaluation of warrants, gain on the sale and license of intellectual property, goodwill impairment charges, and the tax impact of these items. When planning, forecasting, and analyzing gross profit, gross margin percentage, operating expenses, operating income (loss), other income (expense), tax expense (benefit), net income (loss) and net income (loss) per share for future periods, GoPro does so primarily on a non-GAAP basis without preparing a GAAP analysis as that would require estimates for reconciling items which are inherently difficult to predict with reasonable accuracy. A reconciliation of preliminary GAAP to non-GAAP measures has been provided in this press release, and investors are encouraged to review the reconciliation.

Note on Forward-looking Statements
This press release may contain projections or other forward-looking statements within the meaning Section 27A of the Private Securities Litigation Reform Act. Words such as "anticipate," "believe," "estimate," "expect," "intend," "should," "will," "plan" and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements in this press release may include but are not limited to statements regarding our expectations regarding revenue, profitability, improved gross margin, and reduced operating expenses; cash flow improvement and inventory reduction; the launch and market positioning of the MISSION 1 Series cameras in the high-end digital imaging market; our exploration of defense and aerospace market opportunities; our evaluation of strategic alternatives, including a potential sale or merger of the Company; subscription and service revenue and subscriber retention; partnerships and brand collaborations, including with DICK's Sporting Goods and ASUS; and unrealized value in GoPro's technology, intellectual property, and brand. These statements involve risks and uncertainties, and actual events or results may differ materially. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements include the inability to achieve our revenue growth or profitability in the future, and if revenue growth or profitability is achieved, the inability to sustain it; substantial doubt about our ability to continue as a going concern and impact on lenders, suppliers, contract manufacturers, retailers and distributors; the fact that an economic downturn or economic uncertainty in our key U.S. and international markets, inflation, and fluctuations in interest rates or currency exchange rates may adversely affect consumer discretionary spending and demand for our products; changes to trade agreements, trade policies, increased tariffs, and import/export regulations which may negatively affect our business, supply chain expenses, and gross margins; the fact that our goal to grow revenue and be profitable relies upon our ability to manage expenses and grow sales from our direct-to-consumer business, our retail partners, and distributors; our ability to acquire and retain subscribers, and the risk that subscriber count may continue to decline; our reliance on third-party suppliers, some of which are sole-source suppliers,  and contract manufacturers for our products, some of which may be impacted due to supply shortages, long lead times, or other service disruptions, including unprecedented increases and volatility in memory component costs, that may lead to increased costs due to the effects of global conflicts and geopolitical issues such as the ongoing conflicts in the Middle East, Ukraine, or China-Taiwan relations; our ability to maintain the value and reputation of our brand and protect our intellectual property and proprietary rights; the risk that our sales fall below our forecasts, especially during the holiday season; the risk we fail to manage our operating expenses effectively, which may result in our financial performance suffering; the fact that our profitability depends in part on further penetrating our total addressable market, including through new products such as the MISSION 1 Series and expansion into defense and aerospace markets, and we may not be successful in doing so; the risk we are unable to reduce our operating expenses or that continued reductions in research and development and marketing spending may constrain our product roadmap, ability to innovate, and ability to generate sufficient consumer demand; the fact that we rely on sales of our cameras, mounts, and accessories for substantially all of our revenue, and any decrease in the sales or change in sales mix of these products could harm our business; the risk that we may not successfully manage product introductions, product transitions, product pricing, and marketing; our ability to achieve or maintain profitability if there are delays or issues in our product launches; the fact that a small number of retailers and distributors account for a substantial portion of our revenue and our level of business with them could be significantly reduced; our ability to attract, engage, and retain qualified personnel, particularly given reductions in our workforce and fluctuations in the price of our Class A common stock; the impact of competition on our market share, revenue, and profitability; the fact that we may experience fluctuating revenue, expenses, and profitability in the future; our substantial indebtedness, including under our Credit Facilities and Convertible Debentures, and the corresponding cash debt service obligations and restrictive covenants; our ability to comply with financial covenants in our Credit Facilities and the risk of cross-default; the risk that our evaluation of strategic alternatives may not result in a transaction or other outcome that enhances stockholder value, and may be disruptive to our business operations; the risk that our pursuit of defense and aerospace opportunities could subject us to retaliatory actions by foreign governments; risks related to inventory, purchase commitments, and long-lived assets; the risk that we will encounter problems with our distribution system; the threat of a security breach or other disruption including cyberattacks; the concern that our intellectual property and proprietary rights may not adequately protect our products and services; the outcome of pending or future litigation and legal proceedings; and other factors detailed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the "SEC") on March 12, 2026, and as updated in filings with the SEC including the Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. These forward-looking statements speak only as of the date hereof or as of the date otherwise stated herein. GoPro disclaims any obligation to update these forward-looking statements.

GoPro, Inc.

Preliminary Condensed Consolidated Statements of Operations

(unaudited)

Three months ended March 31,

(in thousands, except per share data)

2026

2025

Revenue

Hardware

$              72,150

$             107,419

Subscription and services

26,915

26,889

Total revenue

99,065

134,308

Cost of revenue

Hardware

85,689

83,596

Subscription and services

9,070

7,563

Total cost of revenue

94,759

91,159

Gross profit

4,306

43,149

Operating expenses:

Research and development

28,435

29,557

Sales and marketing

23,218

23,258

General and administrative

9,898

16,942

Goodwill impairment

—

18,600

Total operating expenses

61,551

88,357

Operating loss

(57,245)

(45,208)

Other income (expense):

Interest expense

(4,118)

(797)

Other income (expense), net

(17,612)

948

Total other income (expense), net

(21,730)

151

Loss before income taxes

(78,975)

(45,057)

Income tax expense

1,845

1,652

Net loss

$             (80,820)

$             (46,709)

Basic and diluted net loss per share

$                (0.50)

$                (0.30)

Shares used to compute basic and diluted net loss per share

163,208

156,438

GoPro, Inc.

Preliminary Condensed Consolidated Balance Sheets

(unaudited)

(in thousands)

March 31,
2026

December 31,
2025

Assets

Current assets:

Cash and cash equivalents

$             40,723

$             49,674

Accounts receivable, net

61,858

93,513

Inventory

72,205

78,431

Prepaid expenses and other current assets

32,508

30,951

Total current assets

207,294

252,569

Property and equipment, net

7,772

5,903

Operating lease right-of-use assets

10,580

11,138

Goodwill

133,751

133,751

Other long-term assets

21,958

24,622

Total assets

$            381,355

$            427,983

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$             91,366

$             97,012

Accrued expenses and other current liabilities

130,146

95,856

Short-term operating lease liabilities

10,319

12,069

Deferred revenue

53,077

52,636

Short-term debt

71,954

19,598

Total current liabilities

356,862

277,171

Long-term taxes payable

14,146

13,544

Long-term debt

—

44,322

Long-term operating lease liabilities

6,397

7,329

Other long-term liabilities

5,819

9,067

Total liabilities

383,224

351,433

Stockholders' equity:

Common stock and additional paid-in capital

1,047,276

1,044,875

Treasury stock, at cost

(193,231)

(193,231)

Accumulated deficit

(855,914)

(775,094)

Total stockholders' equity

(1,869)

76,550

Total liabilities and stockholders' equity

$            381,355

$            427,983

GoPro, Inc.

Preliminary Condensed Consolidated Statements of Cash Flows

(unaudited)

Three months ended March 31,

(in thousands)

2026

2025

Operating activities:

Net loss

$             (80,820)

$             (46,709)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

1,794

1,718

Non-cash operating lease cost

1,360

(215)

Stock-based compensation

2,998

5,370

Goodwill impairment

—

18,600

Deferred income taxes, net

573

103

Loss on extinguishment of debt

8,870

—

Derivative expense

7,552

—

Change in fair value of derivative liabilities

5,652

—

Other

2,124

106

Net changes in operating assets and liabilities

13,279

(36,159)

Net cash used in operating activities

(36,618)

(57,186)

Investing activities:

Purchases of property and equipment, net

(1,043)

(1,305)

Net cash used in investing activities

(1,043)

(1,305)

Financing activities:

Proceeds from issuance of common stock

303

374

Taxes paid related to net share settlement of equity awards

(429)

(503)

Proceeds from borrowings

30,250

25,000

Repayments of borrowings

(375)

—

Payment of debt issuance costs

(941)

—

Net cash provided by financing activities

28,808

24,871

Effect of exchange rate changes on cash and cash equivalents

(98)

443

Net change in cash and cash equivalents

(8,951)

(33,177)

Cash and cash equivalents at beginning of period

49,674

102,811

Cash and cash equivalents at end of period

$              40,723

$              69,634

GoPro, Inc.
Reconciliation of Preliminary GAAP to Non-GAAP Financial Measures

To supplement our unaudited selected financial data presented on a basis consistent with GAAP, we disclose certain non-GAAP financial measures, including non-GAAP gross profit, gross margin percentage, operating expenses, operating income (loss), other income (expense), tax expense (benefit), net income (loss), diluted net income (loss) per share and adjusted EBITDA. We also provide forecasts of non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other income (expense), non-GAAP tax expense (benefit), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share. We use non-GAAP financial measures to help us understand and evaluate our core operating performance and trends, to prepare and approve our annual budget, and to develop short-term and long-term operational plans. Our management uses and believes that investors benefit from referring to these non-GAAP financial measures in assessing our operating results. These non-GAAP financial measures should not be considered in isolation from, or as an alternative to, the measures prepared in accordance with GAAP, and are not based on any comprehensive set of accounting rules or principles. We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by facilitating:

the comparability of our on-going operating results over the periods presented; the ability to identify trends in our underlying business; and the comparison of our operating results against analyst financial models and operating results of other public companies that supplement their GAAP results with non-GAAP financial measures. These non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Some of these limitations are:

adjusted EBITDA does not reflect income tax expense (benefit), which may change cash available to us; adjusted EBITDA does not reflect interest income (expense), which may reduce cash available to us; adjusted EBITDA excludes depreciation and amortization and, although these are non-cash charges, the property and equipment being depreciated and amortized often will have to be replaced in the future, and adjusted EBITDA does not reflect any cash capital expenditure requirements for such replacements; adjusted EBITDA excludes the amortization of point of purchase (POP) display assets because it is a non-cash charge, and is treated similarly to depreciation of property and equipment and amortization of acquired intangible assets; adjusted EBITDA and non-GAAP net income (loss) exclude restructuring and other related costs which primarily include severance-related costs, stock-based compensation expenses, manufacturing consolidation charges, facilities consolidation charges recorded in connection with restructuring actions, including right-of-use asset impairment charges (if applicable), and the related ongoing operating lease cost of those facilities recorded under ASC 842, Leases. These expenses do not reflect expected future operating expenses and do not contribute to a meaningful evaluation of current operating performance or comparisons to the operating performance in other periods; adjusted EBITDA and non-GAAP net income (loss) exclude stock-based compensation expense related to equity awards granted primarily to our workforce. We exclude stock-based compensation expense because we believe that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In particular, we note that companies calculate stock-based compensation expense for the variety of award types that they employ using different valuation methodologies and subjective assumptions. These non-cash charges are not factored into our internal evaluation of non-GAAP net income (loss) as we believe their inclusion would hinder our ability to assess core operational performance; adjusted EBITDA and non-GAAP net income (loss) excludes any gain or loss on the extinguishment of debt because it is not reflective of ongoing operating results in the period, and the frequency and amount of such gains and losses vary; adjusted EBITDA and non-GAAP net income (loss) excludes a gain (loss) on insurance proceeds because it is not reflective of ongoing operating results in the period, and the frequency and amount of such gains and losses vary; adjusted EBITDA and non-GAAP net income (loss) excludes a gain (loss) on the revaluation of warrants because it is not reflective of ongoing operating results in the period, and hinders our ability to assess core operational performance; adjusted EBITDA and non-GAAP net income (loss) excludes a gain (loss) related to a derivative liability because it is not reflective of ongoing operating results in the period, and hinders our ability to assess core operational performance; adjusted EBITDA and non-GAAP net income (loss) excludes goodwill impairment charges as they do not reflect ongoing operating results in the period and hinders our ability to assess core operational performance; non-GAAP net income (loss) excludes acquisition-related costs including the amortization of acquired intangible assets (primarily consisting of acquired technology), the impairment of acquired intangible assets (if applicable), as well as third-party transaction costs incurred for legal and other professional services. These costs are not factored into our evaluation of potential acquisitions, or of our performance after completion of the acquisitions because these costs are not related to our core operating performance or reflective of ongoing operating results in the period, and the frequency and amount of such costs vary significantly based on the timing and magnitude of our acquisition transactions and the maturities of the businesses being acquired. Although we exclude the amortization of acquired intangible assets from our non-GAAP net income (loss), management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and can contribute to revenue generation; non-GAAP net income (loss) excludes a gain on the sale and/or license of intellectual property. This gain is not related to our core operating performance or reflective of ongoing operating results in the period, and the frequency and amount of such gains are inconsistent; non-GAAP net income (loss) excludes non-cash interest expense as it is not related to our core operating performance or reflective of ongoing operating results in the period; non-GAAP net income (loss) includes income tax adjustments which reflect the current and deferred income tax expense (benefit) and the effect of non-GAAP adjustments; GAAP and non-GAAP net income (loss) per share includes the dilutive, tax effected cash interest expense associated with our 2025 convertible senior notes and Convertible Debentures in periods of net income, as if converted at the beginning of the period; and other companies may calculate these non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures.  GoPro, Inc.

Reconciliation of Preliminary GAAP to Non-GAAP Financial Measures

(unaudited)

Reconciliations of non-GAAP financial measures are set forth below:

Three months ended March 31,

(in thousands, except per share data)

2026

2025

GAAP net loss

$             (80,820)

$             (46,709)

Stock-based compensation:

Cost of revenue

144

248

Research and development

1,560

2,820

Sales and marketing

575

882

General and administrative

719

1,420

Total stock-based compensation

2,998

5,370

Acquisition-related costs:

Research and development

469

469

General and administrative

1

3

Total acquisition-related costs

470

472

Restructuring and other costs:

Cost of revenue

(15)

(13)

Research and development

(215)

591

Sales and marketing

(125)

385

General and administrative

(5)

1,143

Total restructuring and other costs

(360)

2,106

Non-cash interest expense

1,845

—

(Gain) loss on insurance recovery

—

(424)

Loss on extinguishment of debt

8,870

—

(Gain) loss on revaluation of warrants

(2,750)

—

(Gain) loss related to derivative liabilities

13,204

—

(Gain) loss on sale and/or license of intellectual property

(1,200)

—

Goodwill impairment

—

18,600

Income tax adjustments

67

1,141

Non-GAAP net loss

$             (57,676)

$             (19,444)

GAAP and non-GAAP shares for diluted net loss per share

163,208

156,438

GAAP diluted net loss per share

$                (0.50)

$               (0.30)

Non-GAAP diluted net loss per share

$                (0.35)

$               (0.12)

Three months ended March 31,

(dollars in thousands)

2026

2025

GAAP gross margin as a % of revenue

4.3 %

32.1 %

Stock-based compensation

0.2

0.2

Non-GAAP gross margin as a % of revenue

4.5 %

32.3 %

GAAP operating expenses

$            61,551

$           88,357

Stock-based compensation

(2,854)

(5,122)

Acquisition-related costs

(470)

(472)

Restructuring and other costs

345

(2,119)

Goodwill impairment

—

18,600

Non-GAAP operating expenses

$            58,572

$           62,044

GAAP operating loss

$           (57,245)

$          (45,208)

Stock-based compensation

2,998

5,370

Acquisition-related costs

470

472

Restructuring and other costs

(360)

2,106

Goodwill impairment

—

18,600

Non-GAAP operating loss

$           (54,137)

$          (18,660)

Three months ended March 31,

(in thousands)

2026

2025

GAAP net loss

$             (80,820)

$             (46,709)

Income tax expense

1,845

1,652

Interest expense, net

3,669

248

Depreciation and amortization

1,794

1,718

POP display amortization

1,769

1,732

Stock-based compensation

2,998

5,370

(Gain) loss on insurance recovery

—

(424)

Loss on extinguishment of debt

8,870

—

(Gain) loss on revaluation of warrants

(2,750)

—

(Gain) loss related to derivative liabilities

13,204

—

Goodwill impairment

—

18,600

Restructuring and other costs

(360)

2,106

Adjusted EBITDA

$             (49,781)

$             (15,707)

SOURCE GoPro, Inc.

A GoPro camera is seen in this illustration photo January 9, 2018. REUTERS/Thomas White/Illustration Purchase Licensing Rights, opens new tab

CompaniesMay 11 (Reuters) - Action camera maker GoPro (GPRO.O), opens new tab said on Monday that it intends to review a ​range of strategic options that could include ‌a sale of the company or merger, sending its shares up more than 27% in after-hours trading.

This comes ​nearly a month after the company ​said it had engaged consulting firm Oliver ⁠Wyman to pursue new market opportunities for ​its technology within the defense and aerospace markets.

Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.

The ​California-based company said since then it received several unsolicited strategic inquiries, and its board has authorized it to ​engage a financial advisor to support a ​review.

Separately on Monday, GoPro reported a wider first-quarter adjusted ‌loss ⁠from a year ago and a decline in total revenue as hardware, subscription and service revenue fell in the quarter.

For the quarter ended ​March 31, ​it posted ⁠a loss of 35 cents per share, compared to a loss ​of 12 cents per share a ​year ⁠ago.

GoPro had a market capitalization of $224 million as of last close, according to data compiled ⁠by ​LSEG.

In February, GoPro appointed insider Brian ​Tratt as its chief financial officer replacing Brian McGee.

Reporting by ​Anshuman Tripathy in Bengaluru; Editing by Shailesh Kuber

Our Standards: The Thomson Reuters Trust Principles., opens new tab

GoPro, Inc. (GPRO) Q1 2026 Earnings Call Transcript

(Editor’s note: The future prices of benchmark tracking ETFs, and the headline, the lede and the economic were updated in the story.)

U.S. stock futures fell on Tuesday after Monday’s higher close. This followed President Donald Trump‘s sharp criticism of Iran’s latest response to a U.S. proposal aimed at ending the conflict, saying the ceasefire is now “on life support.”

“I would call it the weakest right now,” Trump said, adding he viewed Tehran’s demands as unacceptable.

On the economic front, inflation ran hotter than anticipated, with the April Consumer Price Index (CPI) rising 3.8% year-over-year, which surpassed the 3.7% median estimate by FactSet. Core CPI, which excludes volatile food and energy costs, climbed 2.8% over the last 12 months and 0.4% monthly.

Meanwhile, the NFIB Small Business Optimism Index edged up 0.1 points to a reading of 95.9 in April, though it remains below its 52-year historical average.

Meanwhile, the 10-year Treasury bond yielded 4.43%, and the two-year bond was at 3.97%. The CME Group's FedWatch tool‘s projections show markets pricing a 97.6% likelihood of the Federal Reserve leaving the current interest rates unchanged during June’s meeting.

IndexPerformance (+/-)Dow Jones-0.04%S&P 500-0.38%Nasdaq 100-0.73%Russell 2000-0.45%Stocks In FocusGitlab Gitlab Inc. (NASDAQ:GTLB) plunged 8.97% in premarket on Tuesday after it announced a reduction in workforce to realign its operating structure. Benzinga’s Edge Stock Rankings indicate that AEHL maintains a weak price trend in the medium and long terms but a strong trend in the short term. GoPro GoPro Inc. (NASDAQ:GPRO) shares jumped 5.30% as it reported better-than-expected first-quarter sales results and also announced the launch of a strategic review exploring the potential sale or merger. Benzinga’s Edge Stock Rankings indicate that GPRO maintains a strong price trend in the long, short, and medium terms. Zoominfo Technologies Zoominfo Technologies Inc. (NASDAQ:GTM) tumbled 32.46% despite beating estimates as cautious forward guidance influenced market sentiment. Benzinga’s Edge Stock Rankings indicate that GTM maintains a weak price trend in the medium and long terms but a strong trend in the short term, with a moderate growth score. Plug Power Plug Power Inc. (NASDAQ:PLUG) advanced 5.40% after posting its first-quarter results after Monday's closing bell, beating analyst estimates on the top and bottom lines. Benzinga’s Edge Stock Rankings indicate that PLUG maintains a strong price trend in the short, medium, and long terms. AST SpaceMobile Benzinga’s Edge Stock Rankings indicate that ASTS maintains a weak price trend in the medium and short terms but a strong trend in the long term. Cues From Last SessionMaterials, energy, and industrials equities posted the most significant gains on Monday, whereas communication services and consumer staples bucked the broader trend by finishing the session lower.

Insights From AnalystsLawrence Gillum anticipates significant economic shifts as the Federal Reserve likely transitions to the leadership of Kevin Warsh. Gillum expects Warsh to champion a smaller Fed balance sheet and reduced forward guidance.

While Gillum notes that U.S. debt levels are projected to soar—potentially climbing above 120% of GDP by 2027—he reassures investors that “the U.S. is not on the verge of a fiscal crisis.” Furthermore, Gillum believes “the odds of aggressive rate cuts under a Warsh chairmanship appear low.”

Regarding the stock market, Gillum warns that less Fed intervention will result in heightened volatility. He predicts that equity and credit markets could face “sharper repricing around data releases” as investors adjust to fewer explicit policy commitments.

Consequently, Gillum advises that a less accommodative central bank will force “greater price discovery in risk assets.” Summing up the unpredictability of this incoming policy regime, Gillum aptly quotes Mike Tyson: “Everyone has a plan until they get punched in the mouth.”

Upcoming Economic DataHere's what investors will be keeping an eye on Tuesday.

Commodities, Crypto, And Global Equity MarketsCrude oil futures were trading higher in the early New York session by 3.05% to hover around $101.06 per barrel.

Gold Spot US Dollar fell 0.76% to hover around $4,698.85 per ounce. Its last record high stood at $5,595.46 per ounce. The U.S. Dollar Index spot was 0.31% higher at the 98.2540 level.

Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.20% higher at $80,924.53 per coin, as per the last 24 hours.

Asian markets closed lower on Tuesday, except Japan's Nikkei 225 index. Australia's ASX 200, India’s Nifty 50, South Korea's Kospi, China’s CSI 300, and Hong Kong's Hang Seng indices fell. European markets were also lower in early trade.

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GoPro, Inc. continues to face persistent revenue declines and margin pressure, with Q1 revenue down 26% and gross margin at a weak 4.3%. GPRO's recent cost-cutting efforts have not offset falling sales; adjusted EBITDA remains negative, and cash burn persists despite operating cost reductions. Strategic alternatives are now being pursued, including a potential sale, as the board and CEO acknowledge the brand's remaining value amid ongoing business contraction.

, /PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO) and Dive with Buddy, Inc. today announced the launch of GoPro Escapes—a new collection of exclusive, creator-led group dive travel experiences now available for online booking at BookWithBuddy.com and on the Buddy mobile app. 

GoPro Escapes—a new collection of exclusive, creator-led group dive travel experiences now available for online booking.

Shot on GoPro’s new MISSION 1 Series. GoPro Escapes are curated multi-day dive trips hosted by GoPro Athletes, underwater storytellers, and professional dive guides in top global destinations chosen for marine life, visibility, and adventure. Each escape offers small-group experiences of 10–40 guests, with comprehensive packages covering accommodations, guided dives, workshops, and the signature GoPro experience.

The launch marks the next chapter of GoPro Escapes, bringing together world-class diving, storytelling, and adventure travel in one centralized destination. Through Dive with Buddy, the global dive community can now discover and reserve official GoPro Escapes experiences—from liveaboards in remote destinations to curated dive expeditions designed for creators and explorers.

The first wave of GoPro Escapes launches across the Americas and Asia-Pacific, with trips expected in Cozumel, Hawaii, Fiji, Raja Ampat, the Maldives, Malaysia, and other premier dive destinations throughout 2026. 

Whether participants are divers, creators, or adventurers looking to capture unforgettable underwater moments, GoPro Escapes are now easier to find and book than ever before. Divers can browse every upcoming GoPro Escape on a dedicated landing page at BookWithBuddy.com, or discover and book them through the Buddy app—where they can also find other dive trips, tours, and courses, and connect with fellow dive buddies worldwide.

"GoPro Escapes bring together adventure, creativity, and community in some of the most incredible underwater locations in the world. Partnering with Dive with Buddy gives our global dive community a simple, dedicated place to discover these experiences, connect with one another, and turn their dives into powerful stories," said Rick Loughery, GoPro's SVP of Global Marketing and Digital Commerce.

All GoPro Escapes live at bookwithbuddy.com/gopro-escapes. Dive shops and operators—including existing GoPro retailers—can now list their multi-day trips as GoPro Escapes by registering at business.bookwithbuddy.com/register. Once approved by GoPro, operators can publish GoPro Escapes with branded booking pages on Buddy's platform.

GoPro Escapes was created to unite diving, storytelling, and adventure travel. Each experience gives participants the opportunity to explore extraordinary underwater destinations while learning how to capture their dives using GoPro cameras.

Together, GoPro and Dive with Buddy are combining storytelling, adventure, and community into a dedicated platform built for divers worldwide. Each GoPro Escapes experience is built around three core pillars:

Adventure: Explore some of the most extraordinary underwater environments on the planet. Storytelling: Learn how to capture cinematic underwater footage using GoPro cameras, mounts, and creative techniques. Community: Dive alongside creators, explorers, and storytellers who share a passion for the ocean. "At Buddy, we want to offer our community a variety of curated trips and experiences where they can meet new buddies and share their love for the ocean. GoPro was the perfect partner for that—they bring the same passion for adventure and storytelling that our community lives and breathes," said Alexis Jabbour, CEO and Founder of Dive with Buddy. "For divers, this means you can discover and book incredible GoPro-curated trips in one place. For dive shops, this is a new way to grow your business with the backing of one of the most recognized brands in adventure."

Explore upcoming trips, discover new destinations, and reserve your place on the next adventure here.

See GoPro at the 2026 SCUBA SHOW
Visit GoPro at the 2026 SCUBA SHOW in Long Beach, California, May 30–31 at stand #158, where attendees can get hands-on with cameras from GoPro's new MISSION 1 Series product line. GoPro will also take the stage for two seminars, "Beneath the Surface: A first look at the next evolution of GoPro," showcasing the next generation of GoPro underwater capture—featuring new camera technology, powerful tools, and diver-focused techniques, plus GoPro PADI Distinctive Specialty courses that help elevate how divers shoot, edit, and tell their stories.

About GoPro Escapes
GoPro Escapes are exclusive group experiences featuring creator-led adventures hosted by GoPro Athletes and pro guides, bucket-list destinations chosen for marine life and adventure, underwater filming workshops and content creation opportunities, and small groups designed for connection and shared ocean experiences.

About Dive with Buddy
Dive with Buddy is the community app and real-time booking marketplace for the water adventure industry. Through BookWithBuddy.com and the Buddy app, divers and ocean lovers discover, connect, and book experiences from dive shops and marine tourism operators worldwide. In the Buddy app, you can book trips, tours, and courses — and meet new dive buddies in your local area or when planning trips around the world. Learn more at bookwithbuddy.com and divewithbuddy.com.

About GoPro, Inc. (NASDAQ: GPRO)
GoPro helps the world capture and share itself in immersive and exciting ways.

Connect with GoPro on Instagram, YouTube, TikTok, Facebook, X, LinkedIn, and GoPro's blog, The Current. Members of the press can access official logos and imagery on our press portal. For more information, visit GoPro.com. 

GoPro, HERO, MAX, MISSION and their respective logos are trademarks or registered trademarks of GoPro, Inc. in the United States and other countries.

SOURCE GoPro, Inc.

GoPro GPRO is under fresh pressure after warning that rising memory costs and weaker sales could put its future at risk. The action-camera maker said in a Monday filing that there is “substantial doubt” about its ability to continue as a going concern, while also saying it expects to update its financial statements. The warning follows a difficult first quarter, when revenue fell 26% and the company received waivers from its lender after failing to comply with loan covenants.

The pressure is being fueled by a brutal shift in the memory market. GoPro said last month that its earnings forecast had been significantly hit by an 80% to 115% increase in memory prices. The AI boom has pushed demand for memory higher, while suppliers have been moving more production away from consumer devices and toward higher-margin AI server chips. GoPro said it learned from suppliers in April that planned memory supply reductions could reduce its forecasted sales.

The balance-sheet risk is now moving closer to the center of the story. GoPro said it does not expect to comply with several loan covenants and may not have enough liquidity if default or cross-default provisions are triggered and its outstanding debt becomes due. Shares fell as much as 14% on Monday. The company has hired advisors to evaluate strategic alternatives, including a possible sale or merger, while also exploring defense and aerospace opportunities and planning to cut its global workforce by about 23%.

© JasonDoiy / Getty Images

Bridgewater Associates walking away from Salesforce (NYSE:CRM | CRM Price Prediction) is exactly the kind of institutional exit that often coincides with entry points for long-duration holders evaluating durable compounders, and CRM offers characteristics long-term holders look for, with a recurring revenue base, expanding free cash flow, and a disciplined capital return program that together function as a quiet workhorse for patient capital.

Pillar One: Durability Subscription and support revenue accounts for roughly 95% of total revenue, and current remaining performance obligations sit at $33.6B, up 14% year over year, with total RPO above $72B. That is billed and unbilled work already on the books. Gross margin runs at 77.68% and operating margin at 21.47%. The company closed FY26 with revenue of $41.525B, up 9.58% year over year, and guided FY27 revenue to $45.9B-$46.2B, with a FY30 target raised to $63B. Agentforce ARR reached $1.2B, up 205%, and nearly 90% of Forbes Top 50 AI companies run on Salesforce. The moat is structural.

Pillar Two: Income and Compounding The board raised the quarterly dividend to $0.44, a 5.8% year-over-year increase, declared February 25, 2026. Free cash flow reached $14.402B in FY26, up 15.83%, and Q1 FY27 alone produced $6.556B in free cash flow on just $145M of capex. Management authorized a $50B share repurchase program and completed a $25B accelerated repurchase that delivered 103M shares upfront, shrinking the diluted share count from 970M to 871M year over year. Total capital returned in Q1 FY27 hit $27.5B. With the share base contracting and the dividend climbing off a 1.03% starting yield, the per-share economics compound quietly across a 10-year or 20-year hold.

Pillar Three: Cycle Survival Enterprise CRM spend has proven sticky through every downturn because ripping out Salesforce means tearing out the operating system of a company’s sales, service, and marketing functions. Net debt/EBITDA sits at 0.78 and ROIC at 7.89%, leaving room to absorb the Informatica financing without straining capital returns. Q1 FY27 delivered EPS of $3.88 versus a $3.13 estimate, the fifth consecutive EPS beat. CEO Marc Benioff called it “an outstanding quarter for Salesforce, record revenue, record deals, and cash flow.”

The Underperformance Scenario The stock has given back 27.74% over the past year and 28.57% year to date. In a sharp risk-off cycle or a compression of enterprise IT budgets, growth could slow temporarily, and integration risk from the Informatica acquisition is real. A temporary growth deceleration in subscription software does little to the compounding engine. The $72B-plus RPO backlog reflects multi-year contracts already signed, and 77.68% gross margins give management enormous flexibility to defend earnings through any cycle. Wall Street’s 41 Buy, 10 Hold, and 2 Sell ratings point to a consensus target of $254.99, but the long-duration case rests on the recurring revenue, the cash machine, and the shrinking share count.

For investors building a long-duration thesis, the case rests on recurring revenue, free cash flow, and a shrinking share count.

LONDON, UK, June 09, 2026 (GLOBE NEWSWIRE) -- Flosum, the end-to-end enterprise DevSecOps platform purpose-built for Salesforce, today outlined its Agentic DevOps approach for enterprises deploying Salesforce Agentforce at scale. As global organizations move Agentforce from pilot to production, Flosum is working with enterprise customers to address the release management and governance demands that autonomous agent deployments introduce—demands that conventional DevOps workflows were not built to handle.

Flosum will be present at Salesforce World Tour London on June 18 at ExCeL London, where the company will meet with enterprise architects, IT leaders, and Salesforce teams navigating the operational complexity of Agentforce adoption.

“The realization of a true Agentic Enterprise requires an equally intelligent, goal-driven foundation to build, deploy, and secure it,” said Girish Jashnani, CEO of Flosum. “With Agentic DevOps, we are ensuring that the release lifecycle for Salesforce Agentforce is seamless, secure, and resilient. By offering flexible cloud and self-hosted deployment options, we give global enterprises the architectural control and trust required to scale autonomous operations without risk.”

Why Agentforce Demands a New DevOps Approach

Deploying Agentforce introduces a layer of complexity that sits on top of an already demanding Salesforce release process. Autonomous agents require careful management of metadata, configurations, permissions, and guardrails across development, staging, and production environments. A change that breaks an agent’s operating parameters in production is not a deployment inconvenience—it is an operational and compliance event.

Flosum’s Agentic DevOps approach addresses this through three capabilities enterprises deploying Agentforce consistently need:

Safe agent deployment. Managing the metadata, guardrails, and configurations required to move Agentforce agents through environments reliably and without exposing production to unvalidated changes.

Goal-driven release management. High-level, goal-oriented tracking that automatically surfaces dependency risk and delivery friction before it reaches production, keeping release velocity high without sacrificing control.

Governance at machine speed. Compliance enforcement and audit trail generation embedded directly into the release workflow, so governance keeps pace with the speed at which autonomous agents operate rather than relying on after-the-fact review.

These capabilities reflect patterns Flosum has observed working directly with enterprise customers on governance-first Salesforce deployments. Cushman & Wakefield, a global commercial real estate firm, achieved a 3x improvement in deployment velocity and a 50% reduction in release audit time after implementing Flosum across its Salesforce estate, a foundation the company is now building on as it looks to expand its use of automation across Salesforce.

Flosum’s work in this area is informed by ongoing research into how enterprise governance must evolve as Salesforce environments adopt autonomous operations. The company’s white paper, “Governing Autonomous Salesforce Agents with Confidence and Clarity,” examines where traditional governance models break down at machine speed and what enterprises need to put in place before deploying Agentforce at scale.

Flexible Deployment Architecture for Regulated Enterprises

Flosum offers cloud and self-hosted deployment options, giving enterprises full control over their data footprint and infrastructure. For organizations in regulated industries, self-hosted deployment ensures data residency compliance, minimizes external dependencies, and protects sensitive Agentforce configurations and metadata.

Connect at World Tour London

Flosum will be at Salesforce World Tour London on June 18 at ExCeL London. To schedule a meeting with the Flosum team, visit https://explore.flosum.com/agentforce-world-tour-london-2026.html.

If you cannot make the show, connect with a Flosum expert by requesting a demo at https://explore.flosum.com/request-a-demo.html.

About Flosum

Flosum is the end-to-end enterprise DevSecOps platform purpose-built for Salesforce. Flosum unifies release management, data backup and archive, and security orchestration into a single secure framework, helping enterprise organizations deploy faster, govern with confidence, and operate Salesforce at scale without sacrificing compliance or control.

Salesforce CEO Marc Benioff Bloomberg/Getty Images Salesforce laid off more employees in a new round of cuts, according to people familiar with the matter and a regulatory notice in California.

The cuts affected employees working on the company's Agentforce AI product, its Mulesoft IT integration tool, and its Marketing Cloud software, one of the people said. The second person confirmed job cuts, without specific details. The people asked not to be identified when discussing sensitive matters.

A person familiar with the cuts said they did not affect the core Agentforce teams.

A regulatory filing in California, known as a WARN notice, listed 86 Salesforce job cuts in roles such as sales, general administration, and technology and product. Roles in Washington state and outside the U.S. were also impacted, two people said.

The California notice stated affected employees would remain on the payroll until Aug. 7. Severance is determined by level and tenure up to six months, according to Salesforce's internal policy viewed by Business Insider. Employees aged 60 and older can receive an additional four weeks.

Salesforce has been hit this year by concerns that AI models, tools, and agents could replace some traditional software, including the company's main customer relationship-management offering. The stock is down more than 30% this year.

Salesforce's answer to this threat is to develop its own AI offerings. In November, Business Insider reported use of Agentforce was relatively low and that its capabilities weren't living up to the company's demos.

Still, this key product has made some progress. Last month, Salesforce reported that Agentforce annualized revenue had passed $1 billion.

Salesforce's latest job cuts follow an earlier round of layoffs in January, when the company eliminated fewer than 1,000 roles.

Salesforce did not respond to requests for comment. The company had more than 80,000 employees at the end of January, according to an SEC filing.

Have a tip? Contact this reporter via email at [email protected] or Signal at +1-425-344-8242. Use a personal email address and a nonwork device; here's our guide to sharing information securely.

Salesforce, Inc. (CRM) Presents at Mizuho Technology Conference 2026 Transcript

CRM trades near a 52-week low after a 33.8% YTD slide. Agentforce ARR soars, growth re-accelerates, and valuation looks cheap.

Shares of Oracle (NYSE:ORCL | ORCL Price Prediction) are down 10% to $182.25 in early trading Thursday, following the company’s Q4 FY2026 earnings report released after the bell Wednesday. The slide is dragging on cloud and enterprise software names, with Salesforce (NYSE:CRM) stock down 1.28% to $168.80 and trading near its 52-week lows.

Oracle stock closed at $201.26 Wednesday, and the pre-market move would take it back to early-spring levels. Salesforce stock closed at $170.92 and is down 35% year to date, making it one of the weakest large-cap SaaS names of 2026.

The session caps a rough stretch for cloud-software stocks. The selloff carries different drivers for each name, and the nuances matter for anyone trying to read the tape.

Cloud Miss and $40 Billion Capital Raise Overshadow Oracle’s Beat Oracle topped expectations on the headline numbers, posting EPS of $2.11 versus $1.97 expected on revenue of $19.18 billion versus $19.09 billion expected. However, Oracle’s total cloud revenue came in at $9.91 billion against $9.99 billion expected, missing estimates.

Within the cloud line, Cloud Applications landed at $4.13 billion, below the $4.17 billion expected, while Cloud Infrastructure hit $5.79 billion, above the $5.72 billion expected. Investors fixated on the application softness even as infrastructure showed strong AI training and inferencing demand.

The bigger issue is capital. Oracle announced plans to raise roughly $40 billion through a mix of debt and equity to fund its data-center buildout, signaling meaningful dilution and added leverage. Oracle’s free cash flow for FY2026 was deeply negative at -$23.7 billion against capital expenditures of $55.7 billion, with restructuring charges of $823 million on top.

On the bull side, Oracle reaffirmed its FY2027 revenue target of $90 billion and disclosed that remaining performance obligations jumped to $638 billion, well ahead of the $589.5 billion expected. That backlog reflects AI-driven cloud demand, anchored by a $300 billion, five-year deal with OpenAI signed in 2025.

Salesforce Slides on Broader Software Weakness Salesforce stock is now down 36% over the past year, a stark contrast to Oracle’s longer-term resilience. The stock trades at a P/E ratio of 19x, reflecting compressed sentiment toward enterprise software despite generally healthy underlying numbers.

Salesforce’s own fundamentals have actually held up. The company beat in Q1 FY2027 on May 27, reporting EPS of $3.88 versus $3.13 expected on revenue of $11.13 billion, with Agentforce ARR climbing to $1.2 billion, up more than 200% YoY. However, the broader narrative around SaaS has turned harsher in recent weeks.

Software stocks have been under pressure partly on “SaaSpocalypse” fears, the worry that increasingly capable AI models could erode demand for traditional per-seat enterprise-software subscriptions. Reddit’s r/stocks community has amplified that thesis, with one widely upvoted thread titled “Salesforce stock is probably the worst to own right now and in the next 3 years” drawing more than 115 upvotes and 98 comments.

The two selloffs trace to different causes. Oracle stock is moving on its specific cloud miss and capital raise, while Salesforce stock is caught in a broader rotation out of SaaS names worried about AI disruption to seat-based revenue models. Conflating the two could lead investors to misread either setup.

What to Watch Investors can watch for whether Oracle stock holds key support at $180 after the 10% drop and how Salesforce stock behaves near the 52-week low of $163.52 throughout the week. Analyst notes through Thursday could shift sentiment in either direction, particularly if sell-side desks recalibrate their views on Oracle’s capital intensity.

The Q1 FY2027 outlook from Oracle, calling for 58% to 64% cloud revenue growth, may keep the bull case alive if early dip buyers step in. Early-session price moves can shift fast, and the open could set the tone for the rest of the cloud complex.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of CRM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for myself or someone else, it may not be the correct investment for you.

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Salesforce (CRM - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this customer-management software developer have returned -0.7% over the past month versus the Zacks S&P 500 composite's -0.2% change. The Zacks Internet - Software industry, to which Salesforce belongs, has gained 0.5% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Salesforce is expected to post earnings of $3.27 per share for the current quarter, representing a year-over-year change of +12.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.5%.

The consensus earnings estimate of $14.12 for the current fiscal year indicates a year-over-year change of +12.8%. This estimate has changed +6% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $15.49 indicates a change of +9.7% from what Salesforce is expected to report a year ago. Over the past month, the estimate has changed +5.4%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Salesforce.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Salesforce, the consensus sales estimate for the current quarter of $11.3 billion indicates a year-over-year change of +10.4%. For the current and next fiscal years, $46.09 billion and $50.4 billion estimates indicate +11% and +9.4% changes, respectively.

Last Reported Results and Surprise HistorySalesforce reported revenues of $11.13 billion in the last reported quarter, representing a year-over-year change of +13.3%. EPS of $3.88 for the same period compares with $2.58 a year ago.

Compared to the Zacks Consensus Estimate of $11.06 billion, the reported revenues represent a surprise of +0.68%. The EPS surprise was +24.36%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Salesforce is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Salesforce. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Innovative Industrial Properties, Inc. (IIPR) Q1 2026 Earnings Call Transcript

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SAN DIEGO--(BUSINESS WIRE)--Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) announced today it has closed on a $56.5 million secured term loan (the “Loan”). The Loan has an initial term of three years, bears interest at the one-month Secured Overnight Financing Rate (SOFR) plus a spread of 500 basis points, is interest only and is secured by certain properties of the Company. The proceeds from the Loan are expected to be used to pay off the Company’s unsecured notes that are maturing at the end of this month.

“The successful closing of this loan reflects the continued confidence in our platform and portfolio. We are appreciative of our new lending relationship that provided this capital to the Company,” said Alan Gold, Executive Chairman of IIP. “This financing further strengthens our balance sheet and positions us to execute on strategic growth opportunities for 2026 and beyond.”

About Innovative Industrial Properties

Innovative Industrial Properties, Inc. is a real estate investment trust (REIT) focused on the acquisition, ownership and management of specialized industrial properties and life science real estate. Additional information is available at www.innovativeindustrialproperties.com.

More News From Innovative Industrial Properties, Inc.

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Innovative Industrial Properties, Inc. remains a Buy after a ~78% drop since 2022, supported by recent solid earnings and attractive valuation. IIPR's triple-net lease model, 110-property portfolio, and 12.4-year WALT provide predictable cash flows and operational resilience. With a 7% AFFO per share CAGR and 9% annual DPS growth, IIPR offers compelling, growing dividends for income-focused investors.

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SAN DIEGO--(BUSINESS WIRE)--Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) announced today it has closed on four secured term loans totaling $44.9 million in gross proceeds (the “Loans”). The Loans have an initial term of five years, bear interest at a fixed rate of 6.67% and are secured by certain properties of the Company. The proceeds from the Loans are expected to be used to pay off the Company’s unsecured notes that are maturing at the end of this month.

“This financing reflects our continued commitment to maintaining a strong and flexible balance sheet. By extending our debt maturity profile and securing attractively priced capital through a new lending relationship, we believe we are well positioned to support our long-term growth strategy and create value for our shareholders,” said Alan Gold, Executive Chairman of IIP.

About Innovative Industrial Properties

Innovative Industrial Properties, Inc. is a real estate investment trust (REIT) focused on the acquisition, ownership and management of specialized industrial properties and life science real estate. Additional information is available at www.innovativeindustrialproperties.com.

More News From Innovative Industrial Properties, Inc.

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Innovative Industrial Properties is undervalued, trading at 8x 2026 annualized first-quarter NFFO versus peers at 14.37x. IIPR's 13.32% dividend yield is not currently covered, but ongoing tenant default resolutions and new leases are expected to improve NFFO coverage and support the payout. Recent leasing momentum and increased payments from defaulted tenants underpin sequential revenue growth, with second-quarter revenue likely to exceed $70 million.

Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR) announced today it has fully repaid its outstanding $282 million of 5.50% Senior Notes Due May 2026, satisfying a significant public debt maturity for the Company. The repayment was completed through cash on hand, availability under the Company’s revolving credit facilities and proceeds from recently closed term loans.

“Repaying this bond maturity represents a meaningful milestone for IIP, which reflects the strength of our balance sheet, disciplined capital allocation strategy and the execution capabilities of our best-in-class management team. As part of this process, we have added multiple new lending relationships to the Company that provided attractively priced debt capital at a blended interest rate of approximately 8.3%,” said Alan Gold, Executive Chairman of IIP. “With this obligation now behind us, we have strengthened our already strong balance sheet and positioned us to focus on strategic growth opportunities.”

About Innovative Industrial Properties

Innovative Industrial Properties, Inc. is a real estate investment trust (REIT) focused on the acquisition, ownership and management of specialized industrial properties and life science real estate. Additional information is available at www.innovativeindustrialproperties.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260526201692/en/