Did YouTube influencers turn everything into gold? GoPro (GPRO.US) surges another 60% pre-market, earnings losses can't stop the stock rally

According to Jinse Finance APP, shares of action camera manufacturer GoPro (GPRO.US) continued their extreme volatility, surging again in pre-market trading on Tuesday after jumping 46% on Monday, at one point soaring 106%. At the time of writing, the stock was up more than 60% in pre-market trade. This round of rebound brought the share price back to May levels, but it remains far below the 52-week high of $3.05.

This buying enthusiasm was ignited by a single news report—according to media sources, YouTube celebrity creator Mark Fischbach (online name: Markiplier) has become the company's largest individual shareholder. In an interview, Markiplier stated: "I saw the price of this stock, and my first reaction was that it seemed undervalued."

Markiplier revealed that this investment had "always been quietly progressing," because he "genuinely wants to see this company turn things around." Notably, Markiplier just released a video last week highly praising GoPro's new Mission 1 ILS interchangeable lens cinema-grade camera, saying that "what it can achieve in such a compact body is stunning," and he plans to use this device in future film projects.

Markiplier has nearly 40 million subscribers on YouTube. Earlier this year, his self-written, directed, and starred debut horror film "Iron Lung" achieved a box office of over $50 million on a $3 million budget. His investment in GoPro is interpreted by observers as part of the broader mission to "make filmmaking more accessible."

On the fundamentals side, GoPro's second-quarter financial report showed a loss per share of $0.21 for the period, a widening from last year's $0.08 loss per share. Revenue fell by more than 31% year-over-year to $105 million, mainly due to declining hardware business income. Hardware revenue accounted for 72% of total revenue, down about 40% year-over-year to $75.95 million. Meanwhile, subscription and services revenue increased by 11% year-over-year to $28.98 million, raising its proportion of total revenue to 28%, which included a $2 million contribution from the GoPro AI content licensing program.

It is worth noting that GoPro's current short position ratio is as high as 16.5% of total outstanding shares, meaning the stock still faces substantial short squeeze pressure.

Of concern, according to Gizmodo, PwC has raised "substantial doubt" about GoPro's ability to continue as a going concern—one of the most severe warnings in the audit field. As of the end of June, the company's principal debt amounted to $87.2 million, of which $24.4 million is due within 180 days.