Wall Street’s latest circus act is in full swing, and the ringmasters are none other than Reddit’s WallStreetBets crew, tossing doughnuts and action cameras into the spotlight. Krispy Kreme shares skyrocketed 12% on Wednesday, while GoPro’s stock did a backflip, soaring nearly 50% in early trading.
These two underdog companies have become the darlings of a meme stock frenzy that’s got investors acting unwise and short sellers sweating bullets.
The WallStreetBets forum, infamous for turning GameStop into a 2021 financial soap opera, is buzzing again with posts screaming “60k DNUT YOLO” and other cryptic battle cries.
Traders are piling into stocks that short sellers have been beating up, hoping to squeeze them into a corner. Krispy Kreme, with 30% of its shares shorted, and GoPro, with 10%, are prime targets for this digital dogpile, according to Bloomberg data.
This isn’t just a doughnut-and-camera revival; it’s a full-on market party. The S&P 500 hit its 11th record high this year on Monday, riding a wave of investor optimism. VandaTrack reports that individual investors dumped a record $155 billion into US stocks and ETFs in the first half of 2025, outdoing the 2021 meme stock bonanza.
Krispy Kreme’s stock, trading at around $4, isn’t exactly a Wall Street heavyweight, but that’s the point. These meme stocks thrive on being the scrappy underdogs, not blue-chip champs. GoPro, a penny stock languishing below $1, fits the bill perfectly for traders looking to stir the pot.
The vibe is pure 2021 déjà vu, as George Pearkes from Bespoke Investment Group points out. “The sentiment is identical,” he says, probably while shaking his head at the market’s wild side. Retail traders are chasing the thrill, targeting stocks that look primed for a short squeeze.
Other stocks have joined the meme parade too. Kohl’s shares mooned 38% on Tuesday before face-planting 14% on Wednesday, per S3 Partners data. Opendoor Technologies had its moment, jumping 43% on Monday, only to tumble 10% Tuesday and 17% Wednesday.
Why the sudden love for these companies? It’s not their sparkling earnings reports—Krispy Kreme’s sales are soggier than a day-old doughnut, and GoPro’s revenue has been sliding faster than a skateboarder on a bad day. Instead, it’s all about momentum and social media hype.
Reddit’s WallStreetBets, with its 19 million members, is the engine driving this chaos. Posts flood the forum with screenshots of risky bets and calls to “hold strong,” turning stock trading into a digital pep rally. One user, Enodios, proclaimed Krispy Kreme the “final piece” in a trifecta of meme stock wins, following Opendoor and Kohl’s.
Short sellers, who bet against these stocks, are getting roasted. With 28-32% of Krispy Kreme’s float shorted, per various reports, and GoPro’s 10% short interest, the squeeze is on. When retail traders swarm, short sellers scramble to cover, pushing prices higher in a feedback loop of financial frenzy.
The broader market’s “risk-on” mood is fueling this fire. Investors, buoyed by tariff relief and hopes of Federal Reserve rate cuts, are throwing caution to the wind. A Goldman Sachs index tracking retail sentiment has soared past 2021 levels, signaling that the crowd is all in.
Andrew Slimmon from Morgan Stanley Investment Management sums it up: “Meme stocks are back, and the riskiest ones are leading the charge.” He’s not wrong—traders are hunting for the next big score, and they’re not picky about fundamentals. It’s less about balance sheets and more about who can yell “YOLO” the loudest.
This rally isn’t without its casualties. Opendoor and Kohl’s, yesterday’s heroes, are nursing double-digit losses as the meme crowd moves on to fresher targets. It’s a fickle game, and today’s hot stock is tomorrow’s cold coffee.
Krispy Kreme and GoPro aren’t alone in the spotlight. Beyond Meat and 1-800-Flowers have also caught the meme bug, with gains of 10% and 17%, respectively. These companies, often struggling with profits, are riding the wave of social media hype and short-squeeze potential.
Trading volumes are through the roof. Krispy Kreme saw over 100,000 call options traded Tuesday, 71 times its usual volume, per Bloomberg. GoPro’s call volume hit a 2021 peak, with 56,000 contracts changing hands.
Analysts are scratching their heads. Daniela Hathorn from Capital.com notes there’s “no significant news” behind these surges—just pure retail momentum. It’s a market where hype trumps logic, and traders are loving every minute.
Will this sugar rush last? History says probably not—meme stocks tend to crash as fast as they climb. But for now, Krispy Kreme and GoPro are the market’s hottest tickets, and WallStreetBets is the place to be.
Leave a Reply