Krispy Kreme, GoPro and Beyond Meat surge as the latest meme stock
revival rolls on
[July 24, 2025] By
DAMIAN J. TROISE
NEW YORK (AP) — As the stock market pushes into record territory and
some companies trade at lofty levels, investors are once again looking
for bargains among some of Wall Street's beaten down companies.
The latest so-called meme stocks include doughnut maker Krispy Kreme,
camera maker GoPro and plant-based meat maker Beyond Meat. Each company
initially surged Wednesday before mostly leveling off, even though
overall they have been struggling to notch profits.
The trio stepped in for department store Kohl’s and the online-based
real estate company Opendoor Technologies, which fell sharply Wednesday
after surging over a number of days. It's a sign of how quickly the hot
meme stocks can fall out of favor.
“While this activity reflects rising risk appetite, it remains isolated
and has yet to challenge the broader market’s calm and steady tone,”
said Mark Hackett, chief market strategist at Nationwide.
Wall Street defines a meme stock as a stock that gains significant
popularity and trading volume, primarily driven by social media hype and
online communities, rather than the company’s fundamental financial
performance. Think GameStop and Blackberry in 2021, and a few subsequent
instances.
Often, meme stocks are initially the target of “short sellers,” or
investors betting against the stock. If other investors start buying the
shares and boost the price, that could prompt the people betting against
the stock to buy more shares to cushion their own losses.
While this activity reflects rising risk appetite, it remains isolated
and has yet to challenge the broader market’s calm and steady tone.
Sugar rush
Krispy Kreme initially surged early Wednesday but finished just 4.6%
higher, adding to its 26.7% gain a day earlier. The company has seen
several years of falling profits and revenue. Wall Street expects it to
post a loss for 2025. During its last earnings update, the company
pulled its financial forecast for the year as it reassesses its
partnership with McDonald's.
Shaky frame
GoPro jumped 12.4% on Wednesday to follow its 41% gain on Tuesday. The
company last posted an annual profit in 2022 and revenue has been
sliding for several years as it faces more competition in a market for
smartphone cameras that it once dominated. Wall Street is forecasting
that the company will eke out a slight profit in 2025.
“Beefy” gains
Beyond Meat initially jumped Wednesday, but closed just 1.4% higher and
is now up more than 20% for the week. The company has been struggling
for years and has yet to notch an annual profit since going public in in
2019. The company warned in its latest earnings update that it is
“experiencing an elevated level of uncertainty” and it pulled its
financial forecasts for 2025.
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The Krispy Kreme logo appears above its trading post on the floor of
the New York Stock Exchange, Monday, May 9, 2016. (AP Photo/Richard
Drew, File)
 Losing momentum
Investors who buy now are betting that the momentum will continue,
but it can shift suddenly.
Kohl’s, which operates 1,600 stores across the country, reversed
course Wednesday and slipped about 14.2% following gains a day
earlier. It is still up 28.4% this week. It is wrestling with a
number of challenges including a revolving door of CEOs and weak
sales.
Opendoor Technologies shares also faded, falling 20.5% to give back
nearly all of this week's gains. The stock nearly tripled last week.
The stock's recent gains came as hedge fund manager Eric Jackson
touted the stock on X. Opendoor faces a tough housing market, with
soaring interest rates and a low supply of homes making purchases
and sales difficult for both homebuyers and homeowners.
Meme stock history
The original meme stock is video game retailer GameStop. In 2021,
the company was struggling to survive amid the switch from discs to
digital downloads and major investors were betting against the
company. Investor Keith Gill, better known as “Roaring Kitty,”
rallied other investors to join him in buying up thousands of
GameStop shares, changing the trajectory of the stock.
GameStop had been trading under $5 heading into 2021. The stock
closed at $23.96 on Wednesday.
The initial meme stock craze eventually fizzled out. But the frenzy
occasionally reignites, as seen the past few years with sudden gains
for BlackBerry, Bed, Bath & Beyond, and Chewy.
It took just four weeks in 2021 for GameStop’s stock to go from less
than $5 to more than $120. But it has yet to touch that price again.
Blackberry quickly jumped from less than $7 to nearly $30 in early
2021, but the gains were shaky and trimmed back within a year.
Blackberry's U.S. traded shares are hovering just above $4.
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AP Business Writer Anne D'Innocenzio contributed to this report.
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