Retail Traders Fuel Parabolic Rise in GoPro, Krispy Kreme, and Beyond Meat Stocks

Meme stocks GoPro, Krispy Kreme, and Beyond Meat surged on retail momentum driven by Reddit threads, high short interest, and speculative options activity. The moves are not backed by fundamental shifts, with Krispy Kreme seeing 71 times its 4-year average in call contracts traded. Retail traders are hunting for the next meme candidate, with high short-interest names like Campbell's and Wendy's appearing in watchlists.

Retail traders have reignited the meme-stock phenomenon, propelling GoPro, Krispy Kreme, and Beyond Meat into sharp price surges. These stocks, which have struggled with declining revenue and profitability, saw their shares surge on July 21-23, 2025, as traders coordinated buying activity through online platforms [1].

GoPro's stock, for instance, jumped 35% on July 23, following a 41% gain the prior day, while Krispy Kreme rose 9% and Beyond Meat climbed 9%, marking significant weekly gains [2]. The frenzy mirrors previous meme-stock episodes, such as the 2021 GameStop surge, but with new participants and shifting dynamics [3].

The surge reflects a pattern where heavily shorted stocks gain traction through social media-driven speculation. Krispy Kreme, with 32% of its free float shorted, became a focal point as retail investors forced short sellers to cover positions, exacerbating the rally [5]. Similarly, GoPro, which last posted a profit in 2022, and Beyond Meat, which has yet to turn an annual profit since its 2019 IPO, have been targeted by traders seeking to capitalize on volatility [7].

The shift in momentum highlights the fleeting nature of meme stocks. Companies like Kohl’s and Opendoor Technologies, which had briefly surged in recent days, lost favor as traders pivoted to new targets. Kohl’s shares fell 16% on July 23, eroding much of its week’s gains, while Opendoor’s stock plummeted 25%, reversing last week’s near-tripling. These swings underscore the speculative risks of meme-stock trading, where hype can quickly fade if broader market conditions or investor sentiment shift [1].

The phenomenon remains tethered to macroeconomic factors. The broader stock market’s record highs and low interest rates have created an environment where speculative bets thrive. However, the underlying financial health of meme stocks remains a concern. For example, Krispy Kreme recently withdrew its 2025 earnings guidance amid uncertainty over its partnership with McDonald’s, while Beyond Meat faces ongoing challenges in a competitive plant-based food market [2].

Historically, meme stocks have generated short-term volatility but limited long-term gains. GameStop, the original meme stock, briefly peaked at $120 in 2021 but has since traded below $25. Blackberry, another past favorite, saw similar rapid gains but has since declined to around $4. This pattern suggests that while meme stocks can offer temporary returns, their long-term success often depends on structural improvements in the companies’ operations rather than speculative trading [3].

Retail traders are hunting for the next meme candidate, with high short-interest names like Campbell's and Wendy's appearing in watchlists. The latest meme-stock frenzy underscores the unpredictable nature of modern equity markets, where sentiment can outpace fundamentals. For now, investors in Krispy Kreme, GoPro, and Beyond Meat are betting on continued momentum, even as the companies’ financial challenges remain unresolved. Whether this momentum will translate into lasting value remains to be seen, but the episode reinforces the enduring role of speculation in shaping stock prices.

References:
[1] https://fortune.com/2025/07/23/stock-market-records-meme-stock-krispy-kreme-gopro-beyond-meat/
[2] https://www.reuters.com/business/retail-consumer/meme-stocks-pare-gains-with-highly-shorted-krispy-kreme-gopro-joining-frenzy-2025-07-23/
[3] https://www.bloomberg.com/news/articles/2025-07-23/dnut-krispy-kreme-gopro-gpro-shares-surge-with-markets-abuzz-about-meme-stocks
[5] https://www.reuters.com/business/retail-consumer/highly-shorted-krispy-kreme-gopro-surge-latest-meme-stock-frenzy-2025-07-23/
[7] https://www.bnnbloomberg.ca/markets/2025/07/23/krispy-kreme-gopro-and-beyond-meat-surge-as-the-latest-meme-stock-revival-rolls-on