Meme-Stock Frenzy Returns: Retailers and Consumer Brands Surge Amid Amateur Trading

Meme-stock trading frenzy has returned with shares in struggling retailers and ageing consumer brands surging, driven by amateur traders mobilized online. The latest rally could be bigger than its predecessor four years ago, according to the founder of the Reddit forum wallstreetbets. Retailer Kohl's, camera firm GoPro, fast-food chain Wendy's, and doughnut chain Krispy Kreme staged rapid rallies this week. Actress Sydney Sweeney helped bring clothing retailer American Eagle Outfitters into the mania.

The meme stock trading frenzy has returned, with shares in struggling retailers and aging consumer brands surging dramatically. This resurgence is driven by amateur traders mobilized online, with the latest rally potentially being larger than the 2021 mania. The founder of the Reddit forum WallStreetBets has indicated that this new wave could be even bigger than its predecessor [1].

Retailer Kohl's, camera firm GoPro, fast-food chain Wendy's, and doughnut chain Krispy Kreme have all staged rapid rallies this week. Additionally, actress Sydney Sweeney helped bring clothing retailer American Eagle Outfitters into the mania. These stocks have seen significant price increases and trading volume spikes, fueled by social media hype and short squeezes [2].

Meme stocks are typically characterized by volatile price movements driven by social media buzz rather than fundamental business improvements. For instance, Krispy Kreme's trading volume surged from five million shares to 150 million in a single day, causing a market shockwave. Similarly, GoPro saw a 73% surge during a single session before ending the day up 12.4% [2].

While these stocks have experienced significant gains, they also come with substantial risks. The volatile nature of meme stocks can lead to rapid losses, and their prices often do not reflect the underlying value of the companies. Small investors are particularly at risk due to the high volatility and speculative nature of these investments [1].

The heightened speculative activity on Wall Street coincides with a broader market rally, as investors breathe a sigh of relief amid better-than-feared tariff headlines. The S&P 500 closed at another record high, bringing its 2025 gains to more than 7% [2].

As the meme stock frenzy continues, investors should be cautious and aware of the risks associated with these volatile assets. The potential for significant gains should be balanced against the high risk of erosion of capital invested in these stocks.

References:
[1] https://www.financialexpress.com/business/investing-abroad-meme-stocks-frenzy-grips-wall-street-as-krispy-kreme-opendoor-sees-heavy-buying-from-retail-know-the-risks-3926674/
[2] https://www.cnbc.com/2025/07/23/gopro-krispy-kreme-join-the-meme-party-as-wall-street-speculation-ramps-up-.html