Meme Stocks Make a Comeback as Investors Scour the Market for Bargains

As the stock market continues to push into record territory, investors are once again turning their attention to so-called meme stocks, which have traditionally been driven by social media hype and online communities rather than a company's fundamental financial performance. Recent meme stocks include Krispy Kreme, GoPro, and Beyond Meat, each of which has been struggling to notch profits. Despite their initial surge, these companies have since leveled off, with Krispy Kreme finishing 4.6% higher, GoPro jumping 12.4%, and Beyond Meat closing just 1.4% higher.

Key Takeaways:

• The latest meme stocks include doughnut maker Krispy Kreme, camera maker GoPro, and plant-based meat maker Beyond Meat, each of which has been struggling to notch profits.
• These companies have seen significant gains in recent days, with Krispy Kreme up 4.6%, GoPro up 12.4%, and Beyond Meat up 1.4% on Wednesday.
• The trend reflects rising risk appetite, but remains isolated and has yet to challenge the broader market's calm and steady tone, according to Mark Hackett, chief market strategist at Nationwide.
• Kirsty Kreme has seen several years of falling profits and revenue, with Wall Street expecting it to post a loss for 2025.
• GoPro has been struggling with falling revenue and last posted an annual profit in 2022, with Wall Street forecasting a slight profit in 2025.
• Beyond Meat has been struggling for years and has yet to notch an annual profit since going public in 2019, and has warned of an "elevated level of uncertainty" in its latest earnings update.
• Investors who buy now are betting on continued momentum, but the trend can shift suddenly, as seen with previous meme stocks such as GameStop and Billberry.

Statistics:

• Krispy Kreme initially surged by 4.6% on Wednesday, adding to its 26.7% gain a day earlier.
• GoPro jumped 12.4% on Wednesday, following a 41% gain on Tuesday.
• Beyond Meat initially jumped, but closed just 1.4% higher, and is now up more than 20% for the week.
• Kohl's, which operates 1,600 stores across the country, reversed course Wednesday and slipped about 14.2%, despite being up 28.4% this week.
• Opendoor Technologies shares faded, falling 20.5% to give back nearly all of this week's gains.
• The original meme stock is video game retailer GameStop, which surged from less than $5 to over $120 in just four weeks in 2021.

Sources:

• AP Business Writer Anne D'Innocenzio contributed to this report.
• Mark Hackett, chief market strategist at Nationwide.
• Eric Jackson, hedge fund manager who touted Opendoor Technologies on X.