Investors sure liked what they saw when peering through the viewfinder of GoPro (GPRO 8.65%) stock on Monday. Absent of any proprietary, share price-moving news, the company seemed to benefit from what appeared to be the latest meme stock rally.
With this considerable tailwind, GoPro shares closed the day almost 36% higher in price, numerous orders of magnitude better than the S&P 500's (^GSPC 0.49%) 0.4% drop.
A modern watercooler stock
GoPro is one of the latest crop of meme stocks, and as ever, that clutch of titles can rocket higher or plunge lower, depending on internet chatter.
Image source: Getty Images.
This has happened to GoPro before, and it seems as if it fueled Monday's surge -- after all, the company had no news of its own to report, nor did it disclose any developments in its operations (or with its stock) in any regulatory filing.
One key element that puts GoPro in a position where it can be very volatile on the market is its extremely low price (which was barely over $1.20 Monday morning before the rally kicked in). At such a level, it doesn't take much to move a stock drastically either up or down, so even a little bit of online buzz can move GoPro sharply.
NASDAQ: GPRO
Key Data Points
A concerning quarter
Although the company didn't have any news to report today, it's hit the headline in recent trading sessions. Earlier this month it published its second-quarter earnings report, revealing a worrying (18%) year-over-year decline in revenue, on the back of a 23% decline in action cameras, its main product category.
It also posted the latest in a string of bottom-line losses, although that latest deficit was narrower than that of the year-ago period.
