After a month-long lull, there could be another “meme stock” rally building up, according to Stocktwits users.
Retail sentiment for GoPro turned ‘extremely bullish’ for the first time in a month early Tuesday, according to Stocktwits data, a day after the company’s stock rallied a whopping 36.4%, reviving expectations that it would again surge on meme-driven buzz that many thought had waned.
GoPro shares tripled over just four days in July, fueled by a fresh wave of “meme stock” trading that also sent Opendoor Technologies, American Eagle Outfitters, and Krispy Kreme soaring — companies not traditionally associated with the meme stock frenzy.
The action camera company’s stock had a trading volume of 45.3 million on Monday, compared to its average volume of 18.5 million, according to Stocktwits data. Retail investors also noted high after-hours activity and projected gains in the coming days.
“$GPRO Gamma squeeze coming. so many calls bought today,” said one user, while another said that they will not sell until the stock hits $6.
To be sure, certain strategic initiatives in the company are also likely behind investor optimism. GoPro said earlier this month that it has started licensing its “petabytes” of high-quality video data to companies for training their artificial intelligence (AI) models.
The move essentially opens a new revenue stream for the company, after years of seeing its core camera business erode due to the rise of Chinese camera companies.
“This vast trove of video content represents a valuable opportunity for AI developers to train their models with a rich and varied dataset across a wide range of experiences and environments,” CEO Nicholas Woodman said at the time.
Meanwhile, the company’s flagship Hero 14 Black cameras are expected to debut next month, which could be another catalyst for the stock.
GoPro stock has increased by over 50% this year.
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