Shares of GoPro (GPRO -6.02%) soared this week, up 28.1% as of 2:15 p.m. ET on Friday. The spike came as the S&P 500 and Nasdaq-100 indexes lost 0.1% and 0.4%, respectively.
GoPro, best known for its compact action cameras, reported strong results from its new artificial intelligence (AI). In just two weeks, subscribers uploaded more than 125,000 hours of footage.
GoPro launches AI pilot program
GoPro recently launched a new pilot program that allows members to opt in to sell their video footage to third parties that use it to train AI models. GoPro then gives each user half the revenue it generates from their footage.
The trial, which began with a small U.S. group, was a major success -- 125,000 hours of footage was uploaded, representing a significant portion of the available footage. With 2.45 million subscribers and 13 million hours of stored content, GoPro has a deep library that could turn into a recurring revenue stream.
Image source: Getty Images.
A meme stock boost
The early success has fueled retail enthusiasm, with some investors drawing parallels to Opendoor's AI-driven hype. Like Opendoor, GoPro is seen by retail traders as sitting on untapped data assets that can help it transform its business.
Still a risky bet
While the program adds a new angle, GoPro's core business, consumer action cameras, remains niche and is saturated by large competitors. The AI licensing effort may generate buzz, but it is unlikely to transform GoPro's long-term outlook. I'd remain cautious on the stock.
