Small-Cap Highlights: Betting on Marc Jacobs, GoPro's Outlook, the Dropbox Hack

Shares of GoPro, the action camera maker, more than doubled—driven by a blogger with a million followers and a deal that will help the company enter the AI market. Revenue from G-III Apparel Group, owner of Marc Jacobs and DKNY, disappointed investors. Hackers compromised thousands of Dropbox accounts. Highlights from the small-cap sector for the week of August 31–September 4—in the Oninvest digest.

GoPro, the action camera manufacturer, surprised investors twice this week. On Monday, August 31, it was reported that the company had gained a popular blogger—Mark Fishbach, known online as Markiplier—as its largest shareholder. Bloomberg reported on this development. Fishbach, a longtime GoPro user, believed the company’s shares were undervalued, according to Bloomberg. He said the investment stems not only from his belief in the business but also from a desire to make filmmaking more accessible. At the close of trading on August 31, GoPro’s stock rose 46% to $0.88. This was the sharpest single-day jump in the company’s history, noted the Stocktwits portal.

The very next day, GoPro announced a merger with Starman Optical, a privately held developer of optical transceivers, to strengthen its presence in the AI-powered data center market as well as in the defense industry. The deal is expected to close by the end of 2026; it has already been approved by the boards of directors of both companies and now requires approval from GoPro’s shareholders and regulators. Once the deal is complete, GoPro’s shares will continue to be traded on the stock exchange. During trading on September 1, the company’s stock rose by 40%.

G-III Apparel Group, the owner of Marc Jacobs, DKNY, and Donna Karan, disappointed investors with its revenue. In the second quarter of fiscal year 2027, revenue fell 10% year-over-year to $554.1 million, compared with a forecast of $570 million. The company attributed the shortfall to weaker sales in Europe. However, earnings per share came in at $0.26, exceeding the consensus estimate of $0.23.

For the full year, G-III expects revenue to decline by more than 8%, to $2.71 billion, partly due to the loss of approximately $460 million in sales following the expiration of the Calvin Klein and Tommy Hilfiger licenses. However, this forecast does not yet take into account the Marc Jacobs acquisition completed on September 1; in the long term, the company expects to generate more than $1 billion in revenue from the brand. G-III shares fell 11.5% on the Nasdaq on September 2, to $28.47. Two Wall Street analysts recommend buying the company’s stock, and one recommends holding it. The average price target is $37.33, which is 37% higher than the last closing price.

Dropbox, the owner of the cloud platform of the same name, told Bloomberg that approximately 5,000 Dropbox accounts were compromised in August. Company spokesperson Tim Ratschmidt told Bloomberg that this would not have a significant impact on Dropbox’s business. The leaks were linked to Lenovo IDs and were not protected by two-factor authentication, according to Bloomberg. During trading on September 1, the company’s stock lost less than 1% of its value.

Since the beginning of the year, Dropbox’s stock price has risen by more than 25%. However, only one analyst recommends buying the company’s stock, while five others recommend holding it and the same number recommend selling it. Analysts cite stagnant revenue growth as one reason for their cautious outlook: at the end of the second quarter, Dropbox’s consolidated revenue increased by only 0.9% year-over-year, to $631.5 million. Another reason is fierce competition: the company charges for access to tools that Google and Microsoft users receive for free. Dropbox’s AI assistant, Dash, which launched in 2024, is still not profitable.