Why GoPro (GPRO) Stock Is Nosediving

What Happened?

Shares of action camera company GoPro (NASDAQ:GPRO) fell 6.2% in the afternoon session after the company reported underwhelming second-quarter 2025 results, with declining sales and earnings per share below analysts' estimates. The action-camera maker's revenue fell 18% year-over-year to $152.6 million, and its non-GAAP loss of $0.08 per share missed analysts' expectations for a $0.06 loss. The CEO stated that the company believes it "will restore revenue growth and profitability to our business starting in Q4 2025." Still, this was a weak quarter.

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What Is The Market Telling Us

GoPro’s shares are extremely volatile and have had 59 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 8 days ago when the stock gained 3.2% on the news that markets rebounded following a sharp sell-off in the previous trading session as weaker-than-expected U.S. jobs data fueled investor hopes for a potential interest rate cut by the Federal Reserve. The July Nonfarm Payrolls report revealed a gain of only 73,000 jobs, significantly below the 110,000 expected. Compounding the news, prior months' figures were revised downward by over 250,000 jobs. This data, indicating a cooling labor market, has led investors to dramatically increase bets on a September interest rate cut by the Federal Reserve, with the probability jumping to over 80% according to the CME FedWatch Tool. The prospect of lower borrowing costs typically stimulates economic activity and boosts consumer spending on non-essential goods and services, which directly benefits companies in the consumer discretionary space.

GoPro is up 13.2% since the beginning of the year, but at $1.25 per share, it is still trading 24.5% below 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 $261.01.

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