GoPro Inc. ( GPRO ) shares dropped 6.98% in after-hours trading on Thursday, continuing a decline from recent meme stock highs as retail investor enthusiasm wanes.

What Happened: The action camera maker closed regular trading at $1.29, down 3.73% for the session. After-hours trading saw the stock fall further to $1.20, extending losses from a peak reached last month, according to data from Benzinga Pro.

GoPro’s stock rally began July 17 at $0.78 and peaked at $1.53 on July 23, driven by renewed meme stock fervor among retail investors. The surge mirrored earlier rallies in GameStop Corp. ( GME ) and AMC Entertainment Holdings Inc. ( AMC ) .

The July rally was fueled by short squeeze dynamics, with short interest at 9.43% creating buying pressure as bearish investors covered positions. The stock’s Relative Strength Index reached 88 during the peak, indicating heavily overbought conditions that typically signal potential pullbacks.

Fundamental factors initially supported the momentum. GoPro ( GPRO ) won a patent infringement ruling against Insta360, with CEO Nicholas Woodman stating the company “will not sit idle while we believe others unjustly take advantage of our hard work, investment and innovation.”

See Also: Dow Falls Over 300 Points Despite Strong Earnings: Investor Sentiment Declines, Fear Index Remains In ‘Greed’ Zone

Why It Matters: The company also provided optimistic second-quarter guidance in May. Sales projections of $135 million to $155 million exceeded the estimated $124.65 million.

The convergence of retail trading activity and improving company fundamentals created significant price swings, with GoPro’s market capitalization surpassing $250 million during the rally’s peak.

Despite positive developments, including Thursday’s announcement of an opt-in AI training program allowing subscribers to monetize cloud-based video content, the stock has declined from peak levels.

Price Action: Friday premarket trading showed shares at $1.23, down 4.65%, reflecting the volatility characteristic of meme stock movements.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.