NEW YORK (TheStreet) -- Shares of GoPro (GPRO) - Get Report are climbing 4.97% to $9.72 in late afternoon trading Tuesday after announcing it has partnered with energy drink company Red Bull in a distribution and promotion deal.
Under the terms of the agreement, the action camera maker will be the official camera provider for Red Bull's events and videos. The companies will co-produce content for both of their distribution networks.
Additionally, Red Bull is now an equity partner in GoPro and will receive less than 1% of its Class A shares, GoPro CEO Nick Woodman told CNBC.
GoPro stock is down roughly 82% this past year as demand for its products has waned, and the company needs "a refresh badly," Dougherty & Company analyst Charles Anderson told Reuters.
Red Bull airs its extreme sports videos through apps on Apple TV (AAPL), Alphabet's (GOOGL) YouTube, Microsoft's (MSFT) Xbox and Sony's (SNE) Playstation, Reuters notes.
"Historically, a ton of this stuff has probably already been filmed using GoPro cameras. My guess is we'll see more GoPro logos in those videos," Anderson added.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
GoPro's weaknesses include its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: GPRO
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.