Why GoPro Stock Jumped 9.1% Today

Key Points

• GoPro announced that the launch of its new AI pilot program was a success.

• The company has a significant amount of video data that it can monetize and is offering to split the proceeds with the customers who uploaded it.

• 10 stocks we like better than GoPro ›

Shares of GoPro Inc. (NASDAQ: GPRO) jumped on Tuesday, finishing the day up 9.1%. The spike came as the S&P 500 and the Nasdaq Composite both gained 0.4%.

GoPro, the maker of compact action cameras, announced that the launch of its new artificial intelligence (AI) pilot program was extremely successful in its first two weeks.

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GoPro makes use of its data

GoPro announced today that its subscribers uploaded more than 125,000 hours of footage to its new AI data licensing effort in roughly two weeks. The trial began with a small, invitation-only group of U.S. members, with a broader rollout and potential international expansion planned.

Participants can allow the content they have stored in GoPro's cloud to be used to train third-party AI models and receive 50% of any licensing revenue the company receives. With 2.45 million subscribers and 13 million hours of content stored, GoPro has a sizable library to monetize.

Image source: Getty Images.

GoPro is the latest meme stock

The successful launch of the program will help cement the company's meme stock status. Like Opendoor stock, which has seen a wave of retail enthusiasm based on the idea that the company can use AI to leverage its substantial data, some investors see GoPro as sitting on a gold mine of video content, highly prized in training AI models.

Though this program looks like it could be a success, I don't think it's enough for GoPro in the long run. The company's main product is one that can only find a niche market, and that market is oversaturated with similar products from larger companies. I would still stay away from GoPro stock.

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.