Even GoPro is pivoting to defense

2026-05-15 · Source: TechCrunch · Field: Business & Management — Corporate Strategy & Leadership, Entrepreneurship & Start-ups · Depth: Fundamental Awareness, quick

Summary

Public markets and private investors are increasingly favoring companies involved in data center infrastructure, energy storage, and defense. Ford's energy-storage business, Redwood Materials' pivot to data center energy storage, and Cerebras's successful IPO in 2026 exemplify this trend, alongside significant investment in defense startups like Anduril, which recently raised $5 billion. Amidst this "pivot to defense" trend, action camera company GoPro, facing declining sales, increased losses, and a flatlined stock price, announced a plan to explore defense and aerospace market opportunities last month. Despite an initial stock price bump, this strategic shift did not sustain investor confidence, leading GoPro to hire investment bank Houlihan Lokey to evaluate a potential sale and other strategic alternatives after receiving unsolicited inquiries.

Key takeaway

For investors evaluating tech companies, recognize the strong market preference for defense and data center infrastructure plays. Your investment decisions should account for this trend, as companies like GoPro attempting a defense pivot may not sustain gains without a clear, viable strategy. Prioritize firms with established defense contracts or robust infrastructure solutions over those merely exploring the sector.

Key insights

The "pivot to defense" and data center infrastructure is attracting significant investment and market valuation.

Principles

• Market sentiment favors defense and infrastructure.
• Durability and imaging tech have defense applications.

Method

Companies facing financial struggles are exploring defense and aerospace markets to attract investment and pursue strategic alternatives like sales.

In practice

• Evaluate defense sector for new revenue streams.
• Consider strategic alternatives for struggling companies.

Topics

• Defense Market
• Corporate Strategy
• GoPro Financials
• Strategic Alternatives
• Investment Trends

Best for: Investor, Entrepreneur, Tech Journalist

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Editorial summary, takeaway, and curation by AIssential. Original article published by TechCrunch.