Shares of action camera maker GoPro (NASDAQ: GPRO) jumped 9.1% on Tuesday, following the successful early-stage rollout of its new artificial intelligence (AI) data licensing pilot program. This gain comes after an unexpected 36% surge on Monday, which analysts attributed to meme stock momentum rather than company-specific news.
The AI initiative, launched two weeks ago, has already seen users upload more than 125,000 hours of video content. Currently available only to a select group of invited U.S. subscribers, the program is expected to expand more broadly and potentially enter international markets.
Under the program, participants can opt to license their cloud-stored content to third-party AI developers for model training, receiving 50% of the revenue generated from such agreements. With 2.45 million subscribers and a library of 13 million hours of video, GoPro possesses substantial data resources that are increasingly valuable in the AI space.
The move reinforces GoPro’s status as a meme stock—a label also applied to companies like Opendoor—where retail investor enthusiasm is driven by perceptions of untapped potential, such as leveraging vast video datasets for AI training.
Despite the optimistic launch, some remain cautious about GoPro’s long-term outlook. While the AI project shows early promise, the company’s core product remains confined to a niche market facing intense competition from larger firms. Second-quarter earnings revealed an 18% year-over-year revenue decline, led by a 23% drop in action camera sales. Although net losses narrowed compared to the same period last year, underlying business challenges persist.
Adding to the volatility, GoPro’s stock—trading just above $1.20 before Monday’s surge—is highly sensitive to market sentiment due to its low price. The recent performance underscores the extreme volatility associated with meme stocks, reminding investors to weigh both transformative initiatives like AI licensing and fundamental business risks.
