GoPro Sales Keep Sliding, But CEO Bets Big On AI With ‘Vast Data Lake’ Of User Videos

GoPro (GPRO) shares fell 2.3% in after-hours trading Monday after the action-camera maker's latest results revealed ongoing sales declines. Still, narrower losses and a new plan to license its video data for artificial intelligence (AI) training offered a bright spot for retail investors.

Revenue fell 18% to $153 million in the second quarter, marking the 12th consecutive quarter of declines. The subscriber count declined by 3% to 2.45 million.

GoPro has seen its market share shrink in recent years due to rising competition from Chinese camera systems and the fading appeal of standalone devices as smartphone cameras become more advanced.

Adjusted loss was $0.08 per share compared to $0.24 last year, and adjusted core loss (adjusted EBITDA) shrank by 83%.

On Stocktwits, the retail sentiment remained 'bearish' as of late Monday, the same as over the last week. Several users forecast the stock declining further to $1.

A user noted that GoPro updated its risks in its investor filing, which now includes deeper losses, subscriber declines, and risks to the business from AI.

A bullish user forecast some upside, noting the company's data licensing plans.

During the earnings call, CEO Nicholas Woodman stated that the company plans to offer its data for training AI models.

“The GoPro subscriber community's vast data lake contains more than four fifty petabytes of cloud-based high-quality video content, which translates into more than thirteen million hours of video," Woodman said.

“This vast trove of video content represents a valuable opportunity for AI developers to train their models with a rich and varied dataset across a wide range of experiences and environments."

GoPro shares are up 20.2% year-to-date.

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