What Happened?
Shares of action camera company GoPro (NASDAQ: GPRO) fell 10.8% in the afternoon session after investors took some profits off the table as markets awaited signals on future monetary policy from the Federal Reserve's Jackson Hole symposium later in the week. The downturn in the market was largely attributed to a significant sell-off in megacap tech and chipmaker shares. Nvidia, Advanced Micro Devices (AMD), and Broadcom all saw notable drops, dragging down the VanEck Semiconductor ETF. Other major tech-related companies like Tesla, Meta Platforms, and Netflix were also under pressure. A key reason for this trend is that much of the recent market gains have been concentrated in the "AI trade," which includes these large technology and semiconductor companies. So this could also mean that some investors are locking in some gains ahead of more definitive feedback from the Fed.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy GoPro? Access our full analysis report here, it’s free.
What Is The Market Telling Us
GoPro’s shares are extremely volatile and have had 57 moves greater than 5% over the last year. But moves this big are rare even for GoPro and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 7 days ago when the stock dropped 6.2% on the news that the company reported underwhelming second-quarter 2025 results, with declining sales and earnings per share below analysts' estimates. The action-camera maker's revenue fell 18% year-over-year to $152.6 million, and its non-GAAP loss of $0.08 per share missed analysts' expectations for a $0.06 loss. The CEO stated that the company believes it "will restore revenue growth and profitability to our business starting in Q4 2025." Still, this was a weak quarter.
GoPro is up 15% since the beginning of the year, but at $1.27 per share, it is still trading 23.3% below its 52-week high of $1.65 from November 2024. Investors who bought $1,000 worth of GoPro’s shares 5 years ago would now be looking at an investment worth $255.56.
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