TLDR
- GoPro (GPRO) stock surged 36% on Monday with no company news, appearing to benefit from meme stock momentum
- Trading volume hit 45.3 million shares compared to average 18.5 million, with retail sentiment turning “extremely bullish”
- The stock tripled over four days in July during previous meme stock rally alongside other unexpected companies
- GoPro recently announced licensing video data to AI companies for model training, creating new revenue stream
- Hero 14 Black cameras expected to launch next month as potential stock catalyst
GoPro stock rocketed 36% higher on Monday without any company-specific news driving the move. The action camera maker appears to have caught another wave of meme stock enthusiasm.
The surge came with heavy trading volume of 45.3 million shares. This compares to GoPro’s average daily volume of 18.5 million shares.
Retail sentiment for the stock turned “extremely bullish” for the first time in a month, according to Stocktwits data. Many traders are already speculating about further gains ahead.
“$GPRO Gamma squeeze coming. so many calls bought today,” one retail investor posted. Another trader said they won’t sell until the stock hits $6.
The Monday rally brought back memories of July’s meme stock frenzy. GoPro shares tripled over just four days during that period.
Fresh Meme Stock Wave Takes Shape
That July surge wasn’t limited to traditional meme stocks. Companies like Opendoor Technologies, American Eagle Outfitters, and Krispy Kreme also soared during the rally.
GoPro’s extremely low share price makes it particularly volatile. The stock was trading at just over $1.20 before Monday’s rally began.
At such low levels, even small amounts of buying pressure can create dramatic price swings. Internet chatter and social media buzz can quickly amplify these moves.
The company closed Monday’s session almost 36% higher. This massive gain came while the S&P 500 dropped 0.4%.
High after-hours trading activity continued following the regular session close. Retail investors noted the extended trading as a positive sign.
Company Fundamentals Paint Mixed Picture
GoPro’s recent earnings report revealed some concerning trends. Second-quarter revenue fell 18% year-over-year, driven by a 23% decline in action camera sales.
The company posted another quarterly loss, though it was smaller than the previous year’s deficit. Action cameras remain GoPro’s main product category despite the sales decline.
Chinese camera companies have eaten into GoPro’s market share over recent years. This competition has pressured the company’s core business.
However, GoPro recently announced a new revenue opportunity. The company plans to license its video data to artificial intelligence companies for model training.
CEO Nicholas Woodman described the move as tapping into “petabytes” of high-quality video content. He called it “a valuable opportunity for AI developers to train their models with a rich and varied dataset.”
This AI licensing deal could provide a fresh income stream beyond camera sales. The timing aligns with growing demand for training data in the AI sector.
GoPro’s flagship Hero 14 Black cameras are expected to debut next month. This product launch could serve as another catalyst for the stock.
The company’s shares have gained over 50% year-to-date despite the recent business challenges. Monday’s meme-driven rally added to those gains substantially.
