Meme Stocks 2.0: Analyzing the Resurgence of Retail-Driven Volatility in GoPro and Krispy Kreme

In the summer of 2025, the stock market witnessed a revival of the meme stock phenomenon—a chaotic yet captivating interplay of social media sentiment, retail investor behavior, and short-term speculative risk. At the center of this resurgence are two unlikely candidates: GoPro (GPRO.O) and Krispy Kreme (DNUT.O). These stocks, once dismissed as speculative oddities, have become focal points for a new generation of retail traders leveraging digital platforms to challenge traditional market dynamics.

The Mechanics of Meme Stock 2.0

The 2021 GameStop (GME.N) and AMC (AMC.N) rallies set the stage for a new era of retail-driven volatility. Today's “Meme Stock 2.0” builds on that foundation, with platforms like Reddit's r/WallStreetBets (19 million members) and Twitter (X) acting as catalysts for coordinated buying. The key ingredients remain unchanged: high short interest, low float, and social media amplification.

GoPro and Krispy Kreme exemplify this formula.
- GoPro (GPRO.O): A 62% surge in a single week, with call volume hitting 56,000 contracts—its highest since 2021.
- Krispy Kreme (DNUT.O): A 25% gain on Wednesday alone, with call volume spiking to 100,000 contracts (71x average daily volume).

These moves are not tied to fundamental improvements. Instead, they reflect a self-reinforcing cycle: social media buzz → retail buying → short squeeze → viral momentum.

The Role of Social Media and Retail Behavior

Reddit's r/WallStreetBets has evolved into a digital trading floor, where amateur investors share strategies, screen captures, and “YOLO” (you only live once) bets. The subreddit's influence is amplified by network effects: a single viral post can trigger a cascade of retail buying, especially when short interest is high.

For example, Krispy Kreme's 32% shorted float made it a prime candidate for a short squeeze. Retail traders identified this weakness and began buying calls, forcing short sellers to cover positions—a dynamic that drove the stock up 70% pre-market in one session.

Meanwhile, platforms like Twitter (X) have become battlegrounds for market sentiment. Hedge fund manager Eric Jackson's bullish commentary on Opendoor (OPEN.O) spilled over into broader meme stock discussions, further fueling retail enthusiasm.

Short-Term Speculative Risks and Market Implications

While the meme stock 2.0 movement shares similarities with 2021, it operates in a different market environment. The S&P 500 is at record highs, and Bitcoin's surge has injected optimism into risk assets. However, the froth remains concentrated in a narrow subset of stocks.

Retail investors now account for 25% of U.S. stock market orders (JPMorgan data), a shift that has destabilized traditional valuation models. For instance:
- GoPro trades at 4x revenue despite declining sales and a 20% drop in operating profits.
- Krispy Kreme's 12-month price target is $4.50, yet it recently traded at $5.17.

These disconnects highlight the speculative nature of the rally. Investors must weigh the short-term potential of a squeeze against the long-term fundamentals of these companies.

Investment Advice: Navigating the Meme Stock 2.0 Landscape

1. Position Sizing Matters: Meme stocks are inherently volatile. Even a 50% gain can evaporate quickly if sentiment shifts.
2. Monitor Short Interest and Float: Use tools like Yahoo Finance or Bloomberg to track short interest ratios and free-float percentages.
3. Diversify Exposure: Avoid overconcentration in meme stocks. Pair speculative bets with defensive positions in sectors like healthcare or utilities.
4. Set Exit Points: Given the emotional nature of meme trading, define clear stop-loss and take-profit levels.

Conclusion

The Meme Stock 2.0 phenomenon underscores the growing influence of retail investors in shaping market outcomes. GoPro and Krispy Kreme serve as case studies in how social media sentiment can override traditional valuation metrics, creating opportunities and risks in equal measure. For investors, the key lies in understanding the mechanics of retail-driven volatility and approaching meme stocks with a disciplined, data-informed strategy.

As the line between social media and finance continues to blur, one thing is certain: the power of the crowd is no longer a market anomaly—it's a force to be reckoned with.