Shares of GoPro Inc (NASDAQ:GPRO) are continuing their remarkable ascent on Wednesday, caught in a wave of renewed meme stock enthusiasm among retail investors.
The action camera maker’s stock saw a massive rally Tuesday and has maintained its momentum, pushing its market capitalization past $250 million.
What To Know: The current rally appears to be a classic short squeeze scenario. With a short interest of 9.43%, a surge in buying pressure can force bearish investors to buy back shares to cover their positions, fueling further price increases.
The stock's Relative Strength Index has soared to 88, a level indicating heavily overbought conditions which can signal a potential future pullback. The current days-to-cover ratio, a metric indicating how long it would take short sellers to exit their positions, stands at 2.13.
This momentum began late Tuesday when GPRO skyrocketed nearly 60% in after-hours trading. While the primary driver is the meme stock phenomenon reminiscent of past GameStop and AMC Entertainment rallies, positive company news has provided a supportive backdrop for investors.
GoPro recently won an initial ruling in a patent infringement case and provided an optimistic second-quarter financial outlook in May, projecting sales and earnings above Wall Street expectations. The convergence of retail fervor and improving fundamentals has likely created a perfect storm for the stock’s recent volatility.
Price Action: According to data from Benzinga Pro, GPRO shares are trading higher by 16.4% to $1.63 during Wednesday’s session. The stock has a 52-week high of $2.37 and a 52-week low of $0.40.
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How To Buy GPRO Stock
An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like GoPro‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.
These are known as capital allocation programs. GoPro does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.
For example, if you're looking to earn an annualized return of 10.44%, you'll need to buy a share of Lazard Glb Total Return by the Aug. 11, 2025. Once done, you can expect to receive a nominal payout of $0.15 on Aug. 22, 2025.
Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on GoPro will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.
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