The Latest on the Meme Stock Frenzy: GoPro and Krispy Kreme Surge as Newest Members

The summer meme stock craze is showing no signs of slowing down as GoPro (GPRO) and Krispy Kreme (DNUT) are the latest to join the ranks of the stocks soaring. Both companies, which have seen their stock prices fluctuate in recent months, experienced huge upswings on Wednesday, with GoPro's shares climbing as much as 90% in premarket trading and Krispy Kreme’s stock jumping up to 70%. While these gains have slowed somewhat, the enthusiasm from retail investors is clear, making these two stocks the latest players in this meme stock revival.

The Latest Meme Stock Sensations

• GoPro (GPRO): +21.21%: GoPro surged by more than 21% on Wednesday, following a dramatic rise in premarket trading. Once a breakout tech stock, GoPro has seen a significant decline in value since its 2014 IPO, with its stock price plummeting around 98% from its peak of $98.47. Despite a drop in revenue for the first quarter of 2025—down 13% year-over-year—the stock's resurgence can be attributed to the meme stock mania currently sweeping markets. While GoPro isn't as heavily shorted as some of its meme stock peers, it has still caught the attention of retail traders seeking to capitalize on short squeezes.
• Krispy Kreme (DNUT): +8.27%: Krispy Kreme, known for its iconic doughnuts, also saw a significant jump in its stock price, rising by 8.27% on Wednesday. The stock had previously hit an all-time high during the pandemic but has since struggled, with a 15% drop in revenue reported for the first quarter of 2025. Like GoPro, Krispy Kreme is not as heavily shorted as some other meme stock favorites, with only around 28% of its shares available to short. Despite this, the doughnut maker has found itself caught up in the meme stock frenzy, with retail investors propelling its stock higher.

The Meme Stock Resurgence

This latest wave of meme stock trading is drawing comparisons to the GameStop (GME) rally in early 2021, when retail investors ran to heavily shorted stocks, driving their prices to huge highs. While GoPro and Krispy Kreme are not as deeply shorted as stocks like Kohl’s (KSS) or Opendoor (OPEN), their recent rallies show that retail traders are still eager to bet on small-cap stocks in hopes of a massive upside.

However, these stocks have not reached the same level of frenzy seen with Opendoor and Kohl's, both of which saw their shares more than double in value earlier this week. The combination of high short interest and a speculative retail investor base has created a volatile environment for these stocks, with the potential for sharp price fluctuations in the coming days.

Retail Traders Eyeing Small-Cap Stocks

Renewed focus on small-cap stocks is a key theme of the current meme stock rally. Investors are once again targeting companies that are undervalued or facing challenges, with the hope that a short squeeze will drive their prices higher.

Despite the significant gains for GoPro and Krispy Kreme, analysts caution that the fundamentals of these companies remain uncertain. GoPro’s revenue has continued to decline, and Krispy Kreme’s struggles in the first quarter of 2025 suggest that the company faces ongoing challenges. However, in the world of meme stocks, fundamentals often take a backseat to speculation, as traders chase quick profits and attempt to trigger massive price swings.

Looking Ahead

As the meme stock rally continues, investors are left wondering whether this surge is sustainable or just another short-lived phenomenon. The key to the rally’s longevity will likely depend on whether retail traders continue to target heavily shorted stocks and whether other meme stock favorites like GoPro and Krispy Kreme can maintain their newfound popularity.

While the short-term volatility presents opportunities for traders, long-term investors should approach these stocks with caution. The fundamental challenges facing companies like GoPro and Krispy Kreme may limit their ability to sustain growth, and as history has shown, meme stock rallies can quickly reverse once the speculative fervor subsides.