Wall Street is becoming increasingly bearish on GoPro Inc, so much so that the company’s shares are now oversold, as indicated by the Relative Strength Index. The index measures how fearful investors are on a given stock.

GoPro

GoPro’s RSI falls below 30

The Relative Strength Index measures a stock’s momentum, giving it a value of between zero and 100. When a stock’s RSI falls under 30, it is considered to be oversold.

Forbes contributor Dividend Channel reports that GoPro became oversold on Thursday when its RSI hit 28.8. The action camera maker’s shares traded down to as little as $57.48 per share. That compares to the S&P 500 ETF’s RSI of 52.7.

Investors who actually like GoPro could see the stock’s RSI as meaning that the time of heavy selling is coming to an end because it’s exhausting itself. Bulls might then start looking for an entry point to get into GoPro stock or increase their position in it.

The lowest point in the company’s 52-week range is $28.65 per share, while the highest point is $98.47 per share. Shares of GoPro Inc slipped more than 4% during regular trading hours today. Just in the last month, the stock has plunged by about 27% as Wall Street worries that GoPro shares might be overvalued. Some analysts have been warning of a correction in the company’s stock for some time.

GoPro as media company

One of the reasons some investors are bullish on GoPro is because of the company’s move into the media market. Seeking Alpha contributor Joe Albano thinks it’s less of a plan to become a media company and more of a plan to expand the brand to make media a bigger part of it. After all, GoPro is about creating and sharing personal videos, so media does seem to be a natural part of the company already.

So what will GoPro look like after it expands the importance of media in its top and bottom lines? Of course the camera maker’s YouTube channel plays a prime role, and analysts have been tracking the number of viewers the channel gets.

Other possibilities involve in-house content and potentially licensing consumer content to be sold to producers or Hollywood studios. It’s also been suggested that GoPro could build its own video sharing website, making it similar to YouTube.

How GoPro can make media more important

Albano points out that monetizing GoPro’s YouTube channel can only go so far. So in order to really make media important, the company will have to do something else, and to get a clue about management’s plans, he looked at how the digital camera maker spends its money.

He found 13 job listings for software-related positions on GoPro’s website. Spending on software certainly seems like an excellent way to expand the importance of media. Morgan Stanley analysts said this week that the camera maker must become the leader in automating video editing in order to keep its dominant position in the action camera market. If GoPro really is focused so heavily on software, this seems like a likely plan for the company.