GoPro (GPRO) Shares Skyrocket, What You Need To Know

What Happened?

Shares of action camera company GoPro (NASDAQ:GPRO) jumped 19.8% in the afternoon session after the company became one of the latest companies caught up in a "meme stock" rally. 

The stock's dramatic climb occurred despite a lack of any specific news or press release from the company itself. The movement was attributed to a resurgence of interest from retail investors, who often coordinate on social media platforms to buy shares of heavily shorted companies. This tactic, known as a "short squeeze," can drive share prices up rapidly. GoPro's stock characteristics, including a low share price and a notable percentage of its shares being shorted, made it an attractive target for this type of trading activity. The surge was accompanied by extremely heavy trading volume, with tens of millions of shares changing hands, far exceeding its usual activity.

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What Is The Market Telling Us

GoPro’s shares are extremely volatile and have had 56 moves greater than 5% over the last year. But moves this big are rare even for GoPro and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 2 days ago when the stock gained 13.1% as the stock continued a recent positive trend. The action camera maker's stock was on an upswing, gaining over 20% in the previous two weeks. This momentum followed a significant legal victory earlier in the month. On July 11, a U.S. International Trade Commission (ITC) judge ruled that competitor Insta360 had infringed on GoPro's patents related to its HERO camera design and HyperSmooth video stabilization technology.

GoPro is up 48.7% since the beginning of the year, and at $1.64 per share, it is trading close to its 52-week high of $1.65 from November 2024. Investors who bought $1,000 worth of GoPro’s shares 5 years ago would now be looking at an investment worth $316.90.

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