Can GoPro (GPRO) Stock Keep Its Recovery Effort Alive in 2026?

Core Insights - GoPro shares have been in a sell-off since mid-2021, with declining revenue and no quarterly net profit since early 2023 [1] - A potential turning point occurred with the launch of an AI training program, leading to a 40% increase in shares since the initiative [2] - Despite the stock rally, there is skepticism about the sustainability of this growth due to a lack of interest in premium action cameras [5] Company Performance - GoPro has not turned a quarterly net profit since early 2023, indicating ongoing financial struggles [1] - The company remains a leading manufacturer of action cameras, but the market for such products has diminished, with consumers favoring smartphones and cheaper alternatives [2] - GoPro's stock has seen a significant increase of about 160% over the past six months, driven by speculation and a renewed interest as a meme stock [4][6] Market Dynamics - The action camera market is perceived to be declining, with no clear signs of recovery for premium standalone cameras [5] - The AI training initiative is seen as a creative move, but competition from platforms like YouTube, which offers a larger video library for AI training, poses a challenge [5] - Over 14% of GoPro's stock float is sold short, indicating ongoing bearish sentiment among some investors [4]