Shares of action camera maker GoPro (GPRO 0.56%) have been moving up this week, having gained more than 13% since Monday. The bulk of those gains is coming today, as shares were up 10.3% at 12:15 p.m. EST.
The stock has been on the list of Robinhood favorites for some time, but the recent move could be related to the resurgence of Reddit's WallStreetBets. GoPro has more than 10.5% of its float held short as of Feb. 26, 2021, according to MarketWatch.
With no recent company-specific news, this week's move could be an attempt at a short squeeze among retail traders.
GoPro has been working to turn around its business by embracing more of a subscription strategy. Subscribers grew to 761,000 at the end of 2020, 52% ahead of the previous quarter and 145% higher than one year ago. The company said GoPro.com generated $116 million in revenue in the fourth quarter, almost double the amount of a year ago.
GoPro is attempting to gain a competitive advantage by pushing its higher-end products as bundled offerings that include a subscription. That has been paying off, as its cameras with retail prices above $300 represented 91% of sales in the fourth quarter. The average selling price was up 14% from the prior-year period, to $323.
There's no new fundamental news explaining the recent surge in shares. But a combination of the business transformation and fairly high short interest may have gained the attention of the Reddit crowd for this Robinhood favorite.