What Happened?
Shares of action camera company GoPro (NASDAQ: GPRO) fell 5.9% in the morning session after it pulled back from a significant rally the previous day as news of a potential new competitor product emerged.
The stock had soared over 15% on Monday in a rally attributed to retail-investor interest, often called "meme-stock" trading, rather than specific company news. Tuesday's decline appears to be a consolidation of those gains.
Adding to the pressure, reports surfaced that competitor DJI inadvertently leaked a teaser for its new Osmo Nano compact action camera. The potential for increased competition in the action camera market could be creating headwinds for GoPro, causing some investors to take profits after the previous session's spike.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy GoPro? Access our full analysis report here, it’s free.
What Is The Market Telling Us
GoPro’s shares are extremely volatile and have had 61 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 about 20 hours ago when the stock gained 13.8% on the news that the company was caught up in a renewed surge of retail-driven “meme-stock” trading. This rally occurred without any apparent traditional financial catalysts or company-specific news. Instead, the move appears linked to a broader trend of retail investors targeting certain stocks, a phenomenon often referred to as "meme-stock" trading. This type of activity, driven by online discussions and social media chatter, can lead to explosive gains that are disconnected from a company's underlying financial performance. Other companies, such as Opendoor and Kohl's, were also noted as experiencing similar surges.
GoPro is up 47.9% since the beginning of the year, but at $1.63 per share, it is still trading 9.6% below its 52-week high of $1.80 from August 2025. Investors who bought $1,000 worth of GoPro’s shares 5 years ago would now be looking at an investment worth $406.75.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
