Is the meme-stock craze making a comeback with Krispy Kreme and GoPro?

Stocks in Struggling Retailers and Well-Known Brands Surge as Online Traders Rally

Shares of underperforming retailers and older consumer brands experienced sharp gains as independent traders, dismissing Wall Street’s doubts, organized through online platforms. The movement is strikingly similar to the frenzy seen in 2021.

However, the current surge in so-called meme stocks could surpass the one from four years ago, when investors heavily bought into recognizable but neglected companies like GameStop and AMC, according to the founder of the Reddit group that helped fuel the previous rally.

This week, retailer Kohl’s, camera company GoPro, fast-food chain Wendy’s, and doughnut seller Krispy Kreme all saw rapid price jumps, driven by sudden increases in trading volume—mirroring the meme-stock trend of 2021, when social media discussions propelled a wave of overlooked stocks, leading to wild price swings.

Clothing retailer American Eagle Outfitters also joined the trend after announcing that actress Sydney Sweeney, known for roles in *Euphoria* and *White Lotus*, would lead its upcoming promotional efforts. The company’s stock rose roughly 10% in Thursday’s trading.

Jaime Rogozinski, founder of the Reddit group wallstreetbets, which played a major role in past volatile rallies, suggested that the current movement could be larger in scale. "Independent traders are reshaping what matters in the market," he said.

"The financial landscape is evolving, with blockchain technology making inroads and AI-driven trading systems emerging," he added. "And the community of individual traders is adapting alongside these changes."

Rogozinski launched wallstreetbets in 2012 but was removed as a moderator in 2020. His attempt to sue Reddit for trademark infringement was recently dismissed by a U.S. appeals court.

The forum allows users to focus on stocks and share their own analyses. "It’s shifting the power dynamics of financial expertise," said Noor Al, a wallstreetbets moderator. "Strong insights can now come from anywhere, from anyone."

"The collective influence of independent traders is moving markets, sometimes by billions of dollars, driven by shared ideas and community strength," he noted.

The 2021 meme-stock wave, which created figures like Roaring Kitty, emerged during the pandemic when many first-time investors, stuck at home with stimulus funds, entered the market.

It remains uncertain whether the current uptick will produce comparable success stories. Kohl’s ended the week up 32%, GoPro rose 66%, and Krispy Kreme climbed 41%. These jumps suggest some investors are embracing higher-risk bets as major tech-driven market gains make outperformance more difficult.

Often, the appeal of meme stocks disregards financial fundamentals, with traders backing companies for sentimental or ideological reasons. For example, Donald Trump’s Trump Media & Technology Group, which operates Truth Social, holds a valuation exceeding $5 billion despite minimal revenue.

The ethos of wallstreetbets has always been, to some extent, about challenging traditional market norms.