GoPro shares surge more than 10% after Apple acquisition speculation
Shares of action cam maker GoPro jumped 16% on Thursday after market analysts speculated that the company may be an acquisition target for Apple.
GoPro shares opened at $17.25 and rose as high as $19.56 on Thursday before closing at $18.83. The spike began when FBR Capital Markets and Co. research analyst Daniel Ives listed GoPro as a potential strategic acquisition for Apple in 2016, saying a GoPro purchase would "make sense" for the Cupertino company.
"We believe GoPro would fit like a glove into the Apple product portfolio," Ives commented in an email to MarketWatch.
Prior to the suggestion from Ives, GoPro shares were down 82% from their all-time high of $93.85 in October 2014. Shares fell below the $24 IPO price in November.
At the close of business Thursday, GoPro had a market capitalization of $2.6 billion, while Apple had more than $200 billion in cash reserves. The companies have worked together closely in the past, with Apple Stores stocking a range of GoPro products and GoPro working to support Apple's entire ecosystem, now including the Apple Watch.