GoPro (GPRO) stock saw a massive rally on Wednesday despite a lack of news from the camera company. This movement, combined with other recent activity, suggests that GoPro has joined the league of meme stocks.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
GoPro fits this category as its shares were recently priced below $1 each, making them easy for meme stock traders to acquire. This can also lead to extra volatility, making GPRO stock a risky bet for long-term investors. On top of that, the company’s short percentage of float is 9.43%, suggesting a short squeeze. This is a tactic often used by meme stock traders to target firms with a high percentage of short interest.
It’s not just GoPro that’s been targeted by meme stock traders recently. Other companies that are likely included in the latest meme stock trading are Krispy Kreme (DNUT), Kohl’s (KSS), and Opendoor (OPEN). Meme stock classics GameStop (GME) and AMC Entertainment (AMC) have also seen increased trader activity lately.
GoPro Stock Movement Today
GoPro stock was up 77.37% in pre-market trading on Wednesday, following a 41.03% rally yesterday. The shares have also gained 25.60% year-to-date but were still down 12.18% over the past 12 months. Today’s rally came with heavy trading, as some 61 million shares changed hands, compared to a three-month daily average trading volume of about 4.13 million units.
Is GoPro Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for GoPro is Moderate Sell, based on one Hold and one Sell rating over the past three months. With that comes an average GPRO stock price target of 63 cents, representing a potential 54.01% downside for the shares.
