TLDR
- GoPro (GPRO) stock jumped 36% Monday with no company news, driven by meme stock enthusiasm
- Trading volume spiked to 45.3 million shares vs 18.5 million average as retail sentiment turned bullish
- Stock tripled in July’s meme rally alongside unexpected companies like Krispy Kreme and American Eagle
- GoPro announced AI data licensing deal and Hero 14 Black camera launch expected next month
- Year-to-date gains exceed 50% despite 18% revenue decline in recent quarter
GoPro stock exploded 36% higher Monday without any company announcements. The action camera manufacturer appears to have benefited from renewed meme stock trading activity.
Heavy volume accompanied the surge with 45.3 million shares changing hands. This represents more than double GoPro’s typical daily volume of 18.5 million shares.
Retail investor sentiment shifted to “extremely bullish” for the first time in weeks according to Stocktwits data. Traders posted optimistic price targets with some eyeing $6 per share.
The dramatic price movement mirrors July’s meme stock frenzy when GoPro shares tripled over four trading days. That rally included unexpected participants like Opendoor Technologies and Krispy Kreme.
Low Share Price Fuels Volatility
GoPro’s sub-$1.50 share price before Monday’s rally makes it particularly susceptible to dramatic swings. Small amounts of buying pressure can create outsized percentage gains.
Social media chatter and online forums often amplify these movements in low-priced stocks. GoPro has established itself as a favorite among meme stock traders.
The stock closed Monday’s session up 36% while the broader S&P 500 index declined 0.4%. After-hours trading remained active with continued retail investor interest.
Options activity surged during the session with traders discussing potential gamma squeeze scenarios. High call option volumes often accelerate upward price movements.
Business Fundamentals Show Mixed Results
GoPro’s recent quarterly results revealed challenges in core operations. Second-quarter revenue dropped 18% year-over-year with action camera sales falling 23%.
The company continues posting losses though the latest quarter’s deficit was smaller than the previous year. Chinese competitors have pressured GoPro’s traditional camera business.
However, new revenue opportunities are emerging for the company. GoPro recently announced plans to license video data to artificial intelligence firms for model training purposes.
New Catalysts on Horizon
CEO Nicholas Woodman highlighted the company’s “petabytes” of high-quality video content as valuable AI training material. This licensing deal could provide income beyond camera hardware sales.
The flagship Hero 14 Black camera series is expected to debut next month. Product launches have historically served as catalysts for GoPro stock movements.
Despite recent business headwinds, GoPro shares have gained over 50% year-to-date. Monday’s meme-driven surge added substantially to those gains as retail traders returned to the stock.
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